SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
NOVEMBER 24, 1998
Date of Report (Date of Earliest Event Reported)
2-96366-A
(Commission File Number)
TREASURE & EXHIBITS INTERNATIONAL, INC.
Florida 59-2483405
(State or other Juris- (IRS Employer Iden-
diction of Incorporation) tification Number)
2300 Glades Road, Suite 450-West
Boca Raton, Florida 33431
(Address of Principal Executive Offices)
(561) 750-7200
(Registrant's Telephone Number)
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ITEM 2. ACQUISITION OF DISPOSITION OF ASSETS
Following its recent abandonment of the long proposed acquisition of
Michael's International Treasure Jewelry, Inc., due to the ultimate
determination that that company's operations were not readily auditable, the
Registrant entered into a lease purchase option for a casino cruise ship named
"The Royal Princess". The lease is effective beginning December 1, 1998 at a
monthly rental of $80,000. The Registrant plans to operate the 150 foot
vessel off the coast of South Florida on an on-going basis. The cruise ship
can accommodate approximately 275 passengers and is operated by a crew of 25.
It contains a complete casino including black jack tables, slot machines, crap
tables and roulette and a full-service restaurant and bar. The Registrant
plans to operate the vessel as a floating gambling casino and restaurant
selling, at the outset, from Miami twice a day, seven days a week. The
Registrant plans to re-name the ship to be known as "Eldorado Casino" and is
planning its inaugural cruise prior to year-end 1998.
The Company funded its entry into the lease purchase option for the
cruise ship with additional borrowing from its affiliate, First Capital
Services, Inc. First Capital is under common control with the Registrant in
that Mr. Larry Schwartz is the Chief Executive Officer and a Director of both
companies. The Company incurred additional debt in the amount of $261,000 in
the transaction, further extending its existing debt to First Capital, the
bulk of which was incurred in the Company's acquisition of the Seahawk
Treasure artifacts on March 19, 1998. Proceeds of the new debt were required
to pay the first and last month's rental security deposit and pre-paid
insurance.
While there can be no assurance that the Company's operation of the
casino cruise ship as currently planned will be successful, the Registrant
anticipates gross revenues from its operation of the leased casino cruise ship
at or about $15 Million, annually. If that level of revenues is in fact
achieved, the Company anticipates that it will be able to operate its leased
casino cruise ship profitably. The venture however comprises the Company's
entry into a totally new area of operations in which it has no previous
experience. There can be no assurances that the Registrant will not encounter
one or more insurmountable obstacles to successful implementation of its
current plan. In the event that the Company encounters unanticipated costs,
regulatory difficulties, labor strife or other unanticipated developments, its
operation of the casino cruise ship will be adversely affected and its
prospects for profitable operations may be precluded.
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SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
TREASURE & EXHIBITS INTERNATIONAL , INC.
Dated: December 29, 1998
BY:/s/Larry Schwartz
Larry Schwartz, President
