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PHI Group and Saigon Pho Palace JSC Sign Agreement to Swap Stock and Prepare for IPO Saigon Pho Palace's Revenue to Exceed $90M in Fiscal 2018
PHI Group and Saigon Pho Palace JSC Sign Agreement to Swap Stock and Prepare for IPO Saigon Pho Palace's Revenue to Exceed $90M in Fiscal 2018.
About this update from Phi Group Inc. (wy)
[{"type":"text","content":"\nNew 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.\n 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 i...