Commitments

9 Months Ended

Sep. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments

6. Commitments

On September 30, 2015 SIII entered into a Conditional Sale and Purchase Agreement (the “Skytower Agreement”) for the purchase of the Skytower Hotel Atayol (the “Skytower Property”), located in Akcakoca Turkey.

The Skytower Agreement contemplates that SIII will purchase up to 100% of the Skytower Property, at the “Purchase Price”, which is defined within the Skytower Agreement to be the lower of the net appraised value of the Skytower Property as determined by a mutually acceptable, fully independent, professional valuator experienced in hotel real estate valuation appraisal within the jurisdiction of the Skytower Property location or alternatively, the vendor’s estimated value of US$50,000,000 minus deduction of all associated Skytower Property debt.

Under the Skytower Agreement the parties have agreed that SIII will, upon completion of due diligence and the contemplated property valuation referred to above, finance the Purchase Price through the issuance of Convertible Debenture Securities of SIII with a deemed value equal to the Purchase Price. Each Convertible Debenture is to have a deemed value of US$100,000 and is convertible into common share of SIII at US$1.00 per share.

The closing of the Skytower Agreement is subject to the acceptable completion of due diligence by SIII.

This is a related party transaction as a Director of SIII is also a director of some companies which comprise the vendors of the Skytower Property.

Any funding that maybe required to complete the Skytower Property transaction has not yet been fully secured, there can be no assurances the transaction will proceed.