Community Life signs Heads of Agreement with LV LivingCommunity...

Community Life signs Heads of Agreement with LV Living

Community Life Ltd (ASX:CLF) has entered into a Heads of Agreement with LV Living Ltd (ASX:LVL) to co-operate in the development of a number of CLF properties and to acquire a 40 per cent interest in RewardsCorp Pty Ltd.

The two companies will, subject to feasibility studies, enter into a joint-venture and/or development services agreement in order to apply LVL's Seetek housing construction system and Extra Care DMF concepts.

LV Living may be engaged as preferred supplier of housing for Community Life's Maryborough site for use of the Seetek building system, and the two companies will further review CLF projects in Bendigo and Newcastle to determine if there are any opportunities for co-operation in these developments.

Subject to due diligence, Community Life will to enter into a share sale agreement with multiple parties for the purchase of 40 per cent of the issued capital in RewardsCorp Pty Ltd for $3.724 million:

a. where LV Living's interests in RewardsCorp will be purchased for $2.4 million in cash and;

b. Bririan Investments Pty Ltd and JAI Investments Pty Ltd (the founding members of RewardsCorp Pty Ltd) will sell down a portion of their equity for $1.324 million to be paid in cash.