ELocity Networks Corp., based in Coronado, Calif., on Tuesday said it has entered into a definitive stock exchange agreement to acquire 12 million shares of Diversified Holdings-XIX Inc. in exchange for 51.1 million shares of eLocity.
Diversified recently acquired various interests in 13 pieces of real estate located in Utah and California. The real estate primarily consist of residential investment properties, which include several homes, three apartment complexes and land. The total estimated gross value of the real estate is about $3.8 million.
The properties in their current condition operate at a slight loss. ELocity said further development of certain properties could generate 4 percent to 8 percent in annual net profits on approximately $400,000 in annual future gross revenues
As a result of the stock exchange, eLocity will own 100 percent of the issued and outstanding shares of Diversified.