Antigua AUA Cafe

This business plan is intended solely for informational purposes and does not represent an offering to buy or sell securities in any jurisdiction. The information contained herein is believed to be reliable, but the management team makes no representations or warranties with respect to this information. The financial projections that are part of this plan represent estimates based on extensive research and on assumptions considered reasonable, but they are of course not guaranteed. The contents of this plan are confidential and are not to be reproduced without the express written consent of management.

The purpose of this memorandum is to provide investors with an overview of a $3.0 million investment opportunity for the development of a new cafeteria for the American University of Antigua (“AUA” or the “University”) which will be the exclusive provider of a university sponsored meal plan for over 2,000 students. The investment is structured as a senior secured term loan with a profit participation collateralized by the cafeteria building and equipment with a minimum revenue guarantee by AUA.

Kaanan Hospitality Holdings has been awarded the very lucrative contract to design, develop, build and manage a cafeteria/student union for American University of Antigua (“AUA” or the “University”), a US-modeled medical school that has experienced a growth in enrollment since its opening in 2004. The University is situated on more than 17 acres and has an enrollment if approximately 2,300 students from 24 different countries (http://www.auamed.org/) of which 70% are from the US. The University has strong financial footings and is owned by Manipal Global Education (MaGE) in India, a university system founded in 1953 (http://www.Manipalglobal.com).

The contract calls for the construction of an 18,000 sq. ft. building located on campus on land owned by the University and the fit out of all necessary equipment and fixtures to operate the cafeteria (the “Cafeteria” or “Cafeteria AUA”). The Cafeteria will have a minimum capacity of 500 persons for sit down dining, a faculty lounge and a student lounge. Funding for the project is $3.3 million of which $300 thousand will be contributed by the University in installments during the build out phase and the balance funded by a senior term loan of $3.0 million (the “Term Loan”) secured by the Cafeteria building and equipment. The Cafeteria is projected to become operational by June 2014. The contract tenor is for 10 years with an option for an additional 10 years. The University will act as an administrator by promoting the meal plan in all of its marketing material and recruitment presentations.

The University will also provide a minimum revenue guarantee equal to 25% of the meal plan revenue that would be generated by the entire student enrollment. Based upon current enrollment of 2,300 students and a meal plan fee of USD 7,000 annually, the minimum revenue guarantee would be $4.025 million.