New York, Oct. 30, 2018 (GLOBE NEWSWIRE) -- PHI Group, Inc. (www.phiglobal.com) (OTCQB: PHIL), a U.S. diversified holding company focused on mergers and acquisitions and investments in select industries and special situations, today announced that the Company has signed a Stock Swap Agreement with the majority shareholder of Saigon Pho Palace Joint Stock Company (“SGP”) in order to exchange 51% of all the issued and outstanding ordinary stock of SGP for Preferred Stock or a promissory note of PHI Group, Inc., either of which may be convertible into shares of a new subsidiary of the Company. The amount of Preferred Stock or the value of the convertible note of the Company to be issued for the exchange of the 51% equity interest in SGP will be based on the results of a valuation of SGP’s business by a professional, independent appraisal firm.

SGP Palace (www.saigonphopalace.com) has an excellent track record in the field of hospitality, construction and real estate investment and is currently developing a number of prominent projects in Ho Chi Minh City and other locations in Vietnam. It has been successfully operating a chain of restaurants that cater to wedding banquets and convention events and plans to build thirty-five more restaurants of this type by 2025. It is estimated that this market segment in Vietnam generates approximately $8 billion in revenue a year. In addition, SGP also has plans to build new chains of 50 “SGP Bulkoki” restaurants by 2025 and 200 “SGP X-N Coffee” shops by 2027. According to Mr. Quy Minh Le, SGP’s Chairman and General Director, its unaudited annual revenues are approximately over US$ 90 million and expected to rise sharply with the additional restaurant and coffee shop chains in the future.

According to the Stock Swap Agreement, PHI will set up a special purpose vehicle as the holding company for the 51% equity interest in SGP and, subject to meeting all necessary compliance requirements, file a registration statement with the U.S. Securities and Exchange Commission to take this subsidiary public in the U.S. Stock Market at the appropriate time in the future to create a platform for SGP’s growth and expansion. The majority shareholder of SGP will have the option to convert the Preferred Stock or the convertible note of PHI Group into 80% stock of the special purpose vehicle when this subsidiary has become a fully reporting publicly traded company in the U.S. Stock Market. This transaction is scheduled to close by November 30, 2018, subject to additional due diligence and independent valuation of SGP.

Quy Minh Le, Chairman and General Director of SGP Palace, affirmed: “ We believe by combining our strengths we will able to create an unprecedented platform for SGP to reach new heights through robust growth and expansion. We are also confident that with proper financial resources we will be able to capture 20-30% of this $8 billion market segment in the next five to seven years and create very significant value for our shareholders.”

Hoang Dinh Vo (Jack Vo), Vice President of Global Business Development of PHI Group, added: “We are convinced that not only can we assist SGP to access international funding sources for growth but also help create corporate advantages by bringing experience and expertise to support SGP’s leaders in their pursuit of excellence and sustainable value.”

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About PHI Group, Inc.

PHI Group (www.phiglobal.com) primarily focuses on mergers and acquisitions and invests in select industries and special situations that may substantially enhance shareholder value. In addition, the Company’s wholly owned subsidiary, PHI Capital Holdings, Inc. (www.phicapitalholdings.com) provides M&A consulting services and assists companies to go public and access international capital markets. We have also been working diligently to launch a Luxembourg Reserved Alternative Investment Fund (RAIF) plus several sub-funds for investment in renewable energy, agriculture and real estate together with international partners.

Safe Harbor Act and Forward-looking Statements

This news release contains “forward-looking statements” pursuant to the “safe-harbor” provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may,” “future,” “plan” or “planned,” “will” or “should,” “expected,” “anticipates,” “draft,” “eventually” or “projected,” which are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements as a result of various factors.

Contact:
PHI Group, Inc.
Hoang Dinh Vo (Jack Vo)
+84907737799
jackv@phiglobal.com