Holiday Island Holdings in Recapitalization Deal After Tom Dees’ Death

The logo for Holiday Island Holdings, which is changing its name to Enhanced Petroleum Extraction Enterprises Inc.

Just days after the death of Holiday Island developer Tom Dees, Holiday Island Holdings Inc., one of the smallest publicly traded companies in Arkansas (OTCMKTS: HIHI), announced on Monday that it has executed a recapitalization agreement with XA Interactive Inc. of Orlando, Florida.

XA Interactive, a privately held enterprise specializing in oil and gas operations and technology, filed a letter of intent and issued a news release on the deal, which will pass control of the public company to XA in exchange for an undisclosed amount of cash.

The deal will initially put more than $150 million in assets on the books of Holiday Island Holdings, the release said. XA operates more than 100 active and producing oil wells, and plans to develop hundreds more in the next three years.

Gene Thompson, Holiday Island Holdings’ CEO and director and a longtime associate of Dees, called the agreement a “huge development for the company and its shareholders, as it is expected to generate significant assets, revenues, and profits from XA’s existing and future operations.”

Michael Prozer, founder and CEO of XA, said in a statement that his company was “very pleased to make this mutually beneficial arrangement with HIHI, and we look forward to building the company to maximize shareholder value and stock liquidity.”

The last time Arkansas Business checked in on Holiday Island Holdings Inc., in 2021, its pink-sheets shares on the over-the-counter market were selling for eight-tenths of a cent per share and the company reported no assets or revenue.

After Monday’s announcement, HIHI shares rose to nearly a penny-a share before settling at about eight-tenths of a share on Tuesday. Its market capitalization was at $895,000.