IRVINE, Calif., Feb. 9, 2010 (GLOBE NEWSWIRE) -- Universal Bioenergy Inc. (Pink Sheets:UBRG), an alternative energy company, announced today that it is has signed a Letter of Intent in a multi-million dollar deal to acquire Roblex Aviation Inc., an air cargo services company based in San Juan, Puerto Rico, as part of its continuing plans for expansion.
Based on the information obtained by Universal, Roblex is a leading, profitable, 13 year old first class air cargo company, with a solid industry reputation in the Caribbean market. Roblex is FAA registered, with primary routes to the Dominican Republic, the U.S. and British Virgin Islands, and has significant potential for growth and expansion. Roblex has over 40 employees and flies primarily out of the San Juan International Airport in San Juan, Puerto Rico. Some of Roblex's clients are the United States Postal Service, Amerijet, Delta Cargo and other blue chip clients.
Universal's Sr. V.P., Solomon Ali, says, "We're very confident about the potential acquisition of Roblex. We believe that a solid operating company like Roblex will give us the ability to ship energy products and technologies to many regions and facilitate other aspects of our planned growth. We feel that, based solely on our initial due diligence, that if the Roblex acquisition is completed, the potential net profit to be generated initially is estimated at $1.15 to $1.50 million annually. Based on Standard & Poor's valuation standards using industry average P/E ratios at a multiple of 15 to 17 times earnings for the company, a value of $17.25 to $25.5 million dollars is a potential estimate of the market value of Universal, if the acquisition is completed. This new market value should potentially have a very positive impact on our stock price."
The final terms and conditions of the acquisition are being negotiated, and will be determined in the definitive agreement. No assurances can be provided that a definitive agreement will be executed. Execution of a definitive agreement is subject to, among other things, confirming due diligence by Universal, standard regulatory approvals, and other conditions and approvals by both companies' management and board of directors.
About The Company
Universal Bioenergy Inc. is an alternative "Green Energy" company, and intends to create and market alternative energy sources including Solar, Biofuels, Wind, Synthetic Fuels and other related energy technology products. It plans to build the company into a prominent player in alternative green energy. For inquiries contact: Investor Relations at 888-263-2009.
The Universal Bioenergy Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6784
Safe Harbor Statement - There are matters discussed in this media information that are forward looking statements within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. Such statements are only forecasts and actual events or results may differ materially from those discussed. For a discussion of important factors which could cause actual results to differ from the forward looking statements, refer to Universal Bioenergy Inc.'s most recent annual report and accounts and other SEC filings. The company undertakes no obligation to update publicly, or revise, forward looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required.