* Company Hosts Conference Call at 4:30 PM Eastern Standard Time
New York, Nov. 20, 2018 (GLOBE NEWSWIRE) -- PHI Group, Inc. (www.phiglobal.com) ( PHIL), a U.S. diversified holding company focused on mergers and acquisitions and investments in select industries and special situations, today commented on the operating results of the quarter ended September 30, 2018.
During the quarter ended September 30, 2018, the Company primarily focused on the establishment of the Luxembourg institutional bank fund and new M&A business development as a principal and did not generate any revenue from advisory and consulting services, as compared to $28,500 for the quarter ended September 30, 2017. The company incurred $280,497 and $134,295 in operating expenses for the comparable three months ended September 30, 2018 and 2017, respectively. The increase of $146,202 on total operating expenses between the two periods was mainly due to increases in professional services and general and administrative expenses.
Loss from operations for the quarter ended September 30, 2018 was $280,497, as compared to loss from operations of $105,795 for the corresponding period ended September 30, 2017. An increase of $174,702 in the loss from operations between the two periods was mainly due to the absence of revenue and increases in professional services and general and administrative expenses in the current quarter.
Net other expenses were $637,186 for the three months ended September 30, 2018, as compared to net other expenses of $455,623 for the three months ended September 30, 2017. The increase in other expenses of $181,563 between the two periods was mainly due to an increase of $413,328 in net interest expenses, offset by a decrease of $44,444 in other expense, and the absence of loss on debt settlement and on loan conversion during the current period.
Net loss for the three months ended September 30, 2018 was $917,682, as compared to net loss of $561,418 for the same period in 2017, which is equivalent to ($0.01) per share for the current period and ($0.02) per share for the corresponding period ended September 30, 2017, based on the weighted average number of basic and diluted shares outstanding at the end of each corresponding period.
During the quarter ended September 30, 2018, the Company successfully closed the acquisition of 51% ownership in Vinafilms Joint Stock Company (www.vinafilms.com.vn), which generated $25 million in revenues and $765,000 in EBITDA in 2017 according to Vinafilms domestically audited annual report containing financial statements for the year ended December 31, 2017. Vinafilms has recently installed a German state-of-the-art plastic film processing system and plans to add two more of these to meet the growing domestic and international demand for its products. Vinafilms also plans to enter a joint venture with a leading Vietnamese plastic bag manufacturing company with an aim to bring combined revenues to over $150 million per year by the end of 2019. PHI Group is currently conducting the financial audits of Vinafilms according to the U.S. Generally Acceptable Accounting Principles (GAAP) and will be able to report consolidated operating results from Vinafilms JSC for the quarter commencing October 1, 2018.
Subsequently, on October 16, 2018, signed a Stock Swap Agreement with the majority shareholder of Saigon Pho Palace Joint Stock Company (SGP) (www.saigonphopalace.com) in order to exchange 51% of all the issued and outstanding ordinary stock of SGP for Preferred Stock or a promissory note of PHI Group, Inc., either of which may be convertible into shares of a new subsidiary of the Company. The amount of Preferred Stock or the value of the convertible note of the Company to be issued for the exchange of the 51% equity interest in SGP will be based on the results of a valuation of SGPs business by a professional, independent appraisal firm. According to Mr. Quy Minh Le, SGPs Chairman and General Director, its unaudited annual revenues are approximately over US$ 90 million and expected to rise sharply with the additional restaurant and coffee shop chains it plans to open. PHI Groups management believes the additions of Vinafilms and SGP, subject to the Companys meeting compliance standards, should enable PHIL to qualify for an uplist to the Nasdaq Stock Market in the near future.
PHI Group Chairman and CEO Henry Fahman said, During the three months ended September 30, 2018, we mainly focused our energy and resources on the establishment of the Luxembourg institutional bank fund and M&A activities as a principal. Though the last quarters financial results were disappointing, we strongly believe that our recent acquisitions of Vinafilms and SGP as well as our efforts in the establishment of the Luxembourg institutional bank fund will potentially create very significant value for the Company and our shareholders in the near future.
PHI Group CEO Henry Fahman will host a conference call for shareholders and investors at 04:30 P.M. Eastern, Tuesday, November 20, 2018 to discuss the special stock dividend and recent important corporate developments.
To participate in the conference call, please follow the following dial-in directions, using Meeting ID: 853-465-312.
Join from PC, Mac, Linux, iOS or Android: https://zoom.us/j/853465312
Or Telephone: (followed by Meeting ID and # )
US: +1 646 558 8665 or +1 408 638 0986
Germany: +49 (0) 30 3080 6188
Canada: +1 647 558 0588
Romania: +40 31 630 1088
United Kingdom: +44 (0) 20 3695 0088
Additional international numbers available: https://zoom.us/u/fPq7ABz4
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 Companys 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.
PHI Group, Inc.