PHI Group Receives the First Drawdown from the $50-million Milost Equity Subscription Agreement
NEW YORK, Sept. 28, 2016 (GLOBE NEWSWIRE) -- PHI Group (www.phiglobal.com) (OTC Markets:PHIL), a U.S. diversified holding company engaged in mergers and acquisitions, announced today that the Company has received a large portion of the first drawdown of $2.75 million from the $50-million financing facility previously committed by Milost Global, Inc., a U.S. private equity firm, and expects to receive additional funds from Milost Global, Inc. for acquisition and working capital purposes.
The drawdown is in the form of a convertible note bearing interest at the rate of 5% per annum and convertible to PHI Group, Inc.’s common stock at the purchase price of $2 per share minus 20% discount. The Company intends to use the proceeds of the first drawdown to fund part of the acquisition of an agriculture company in the Southeastern United States and to defray due diligence and closing costs of the South African mining service target, the Canadian educational company and the agriculture company as well as provide for short-term working capital.
Henry Fahman, Chairman and CEO of PHI Group, stated: “We cannot overemphasize the importance of having both Milost Advisors, Inc. and Milost Global, Inc. as our partners in our acquisition strategy. Their commitment and ability to deliver on it in a timely manner enable us to implement a value-creating buyout and investment program designed to benefit our shareholders and all stakeholders.”
Ronald Spratt, CEO of Milost Global, Inc., added: “We are very pleased to work with PHI Group and look forward to building a mutually-rewarding, fruitful long-term business relationship. This drawdown is the first one of many tranches to come to provide the necessary resources for PHI Group to execute its mergers and acquisitions strategy.”
Nigel Buxton, Chief Investment Officer of Milost Global Inc. said: “Milost Global is happy to support companies like PHI Group which have the vision and also grasp the opportunities on the market.”
