VHGI Holdings Inc fka VHGI

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VHGI DD - All-In-One Page

Company: VHGI Holdings, Inc.
Subsidiary: Lily Group,Inc.-wholly owned by VHGI
Acquisition date: 2/22/12 - VHGI acquired Lily Group
Stock Symbol: VHGI (OTCQB)
SEC status: fully reporting, fully audited
52 week H/L: .69 - .0028
Avg. vol.: 2,155,481 (3 mos.)
Authorized: 250M shares
Website: http://lilygroup.com
CEO: Paul R. (Rick) Risinger
Business Address: 103 N Court St., Sullivan, IN
Mine Address: 15127 W 700 North, Jasonville, IN
Mine name: Landree Mine
Acreage: 2,800 acres
Provable tons: 24,000,000
Coal Value @$61 ton: $1,464,000,000 ($1.464B)
County: Greene County, IN
Type of Coal: Illinois Basin http://www.eia.gov/todayinenergy/detail.cfm?id=8670
Permits: Fully permitted
Employees: Approx. 66
Property Plant & Equipment: $50M (approx.)
Contracts: IP&L for 1M tons
Contract price: $61 per ton
Rail line: Borders property

Chart (Weekly):
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=86279301

Media:
http://mywabashvalley.com/fulltext?nxd_id=219177 – Local News – Part one
http://mywabashvalley.com/fulltext?nxd_id=219197 – Local News – Part Two

1. Recent funding of $6M (Feb. 28) to purchase additional equipment and effect upgrades.
http://finance.yahoo.com/news/lily-group-inc-closes-line-164900881.html

2. Existing contract with Indianapolis Power & Light for 1M tons at $61 per ton.
http://www.prnewswire.com/news-releases/vhgi-holdings-inc-announces-signing-of-multi-year-coal-supply-agreement-by-major-utility-and-the-lily-group-inc-137177913.html

3. VHGI has a completely new management now with the current CEO - Rick Risinger - being the one who started the mine.

Risinger, the current CEO of VHGI had served as president of the company’s wholly owned subsidiary, VHGI Coal, Inc., since February of 2012, and prior to that had served as president of Lily Group, Inc., (LGI) which he founded in July of 2008. From 1987 until August of 2012, Mr. Risinger also served as president of Risinger Insurance Agency, an independent multiline insurance agency with over 12,000 policy holders.

Mr. Risinger was the sole stockholder and President of LGI and has a great deal of experience in the coal industry, where he began his career as a coal mine master electrician at Peabody Coal Company in 1976. He went on to become President of Coal, Inc., an underground coal mine that produced in excess of 1,000,000 tons of coal annually and employed over 100 miners. Mr. Risinger was also the President of Buck Creek Coal Company. Buck Creek employed over 150 miners and produced over 2,000,000 annual clean tons of coal in the Illinois basin. He later took the position of Vice President with Black Diamond Coal Co. Inc., where he completed the permitting process, oversaw land acquisitions, procured coal sales, and developed a new underground coal mine. He was also instrumental in gathering financing and designing mine plans for production and safety. Mr. Risinger was appointed Chairman and CEO of VHGI Holdings (parent company of LGI) in September 2012.

Risinger started Lily Group which is the entity that bought and started the Landree Mine which is the mine that is wholly owned by VHGI.

4. Ron Hutchcraft, President of VHGI Coal, is a seasoned veteran in the coal industry with 25 years experience.

Mr. Hutchcraft joined the Lily Group Team in February 2012 and adds 25 plus years of coal mining experience. Mr. Hutchcraft brings a tremendous amount of expertise in all facets of coal mining including engineering, operations, safety, financial analysis, senior management and senior leadership. A true Renaissance coal miner, Ron has experience at every level of the coal production process from development to production to reclamation. Mr. Hutchcraft has held several top senior management positions over the past ten years with proven success. Mr. Hutchcraft was promoted to President of Lily Group in September 2012 and in charge of overseeing current operations and future developments. Mr. Hutchcraft received a B.S. in Mining Engineering from the University of Missouri – Rolla in 1987 and a Masters in Mining Engineering in 2007.

5. Shipped a scheduled trainload to IP&L on *3/29/13 (Friday)
http://finance.yahoo.com/news/vhgi-holdings-provides-landree-mine-202900644.html

Lily Group Inc. is contracted to produce and ship a minimum of 180,000 tons at a contract price of $61 per ton (worth $10,980,000) to Indianapolis Power and Light (IP&L) for 2013.
(*2-day delay due to IP&L being only able to bring train on Friday instead of earlier in the week as anticipated by VHGI. This is the first significant delivery of coal for VHGI since its inception and confirms the ability of VHGI to fulfill its contract with IP&L.

6. Improvements and upgrades are being done that will increase production which was made possible by the recent $6M funding by James Stuckert and Oden Howell.

7. 24,000,000 in-place tons of coal.

The Landree Mine, located in Greene County Indiana, is fully permitted and controls a total of 24 million in-place tons of coal, with projected production of approximately 20,000 tons per month and plans to secure additional adjacent minerals through leases in order to expand the reserve.

8. Plans to secure additional adjacent minerals through leases in order to expand the reserve.

9. Landree Mine Phase I is targeted for completion by April 1, 2013 (approx.)

10. "...this credit facility will support Lily Group's operational needs and provide us with the opportunity to arrange long-term financing for the mine's continued development," said Barrett Kingsriter, Managing Director of Barrier Advisors.

Barrier Advisors is owned by NexBank and closely associated with Highland Capital Management ($20B in managed assets)

11. Approx. $50M worth of existing equipment with over $1B worth of existing coal reserves.
See SEC Edgar filings.

12. Support of James W. Stuckert (74) and Oden Howell. They are obviously very wealthy and respected businessmen and are the money behind VHGI. They are both Directors of Royal Gold (RGLD).

James Stuckert (74)

Profile

Mr. Stuckert is a Senior Executive since 2004 and has been the head of Hilliard, Lyons, Inc., a full service financial asset management firm located in 13 Midwestern states. Mr. Stuckert joined Hilliard, Lyons in 1962 and served in several capacities including Chief Executive Officer prior to being named Chairman in December 1995. He served as Chairman from December 1995 to December 2003.

Hilliard Lyons is a full-service investment firm with more than 3000 total employees of which 700 are financial consultants, at 120 branches in 16 states. The firm has floors on the New York and American Stock Exchanges and is a member of the Chicago Stock Exchange. Hilliard Lyons, Inc. was acquired by PNC Bank Corp, Pittsburgh, Pennsylvania in December 1998. The firm retained its name, employees and headquarters in Louisville, Kentucky. This acquisition has positioned the broker-dealer among the larger entities in the financial services industry.

Mr. Stuckert also serves as an Advisor at United States Growth Funds. He has been a Director of Royal Gold Inc. since Sept. 1989. He has been a Trustee of University of Kentucky since July 2, 2009. sits on the boards of the Hilliard Lyons Trust Company, Royal Gold Inc., and Thomas Transportation Group. He serves as chairman of the University of Kentucky Development Council and chaired the Corporate and Foundation Committee for the new William T. Young Library. He was named to the Carol Martin Gatton College of Business and Economic’s Hall of Fame in 1997. Mr. Stuckert holds a Bachelor of Science degree in Mechanical Engineering and a Master of Arts degree in Business Administration from the University of Kentucky.

As an undergraduate he was vice president of the American Society of Mechanical Engineers; a member of the Engineering Student Council; Pi Tau Sigma, mechanical engineering honor society; Omicron Delta Kappa, national leadership honor society; and served two terms as president of Kappa Sigma fraternity. He was the business manager for the Kentucky Engineer magazine and the College of Engineering’s student government representative. After earning his B.S.M.E. degree, he immediately enrolled in graduate school, earning a Master of Business Administration degree from UK in 1961. He is the current chairman of the University of Kentucky Development Council and is national chairperson of the University’s $1 billion comprehensive fund-raising campaign, the first-ever undertaken by the University.

Stuckert stock holdings:

Royal Gold Stock (RGLD) Ownership for 2012
Number of shares owned = 1,608,260
1,608,260 shares X $71.03 = $114,234,708
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VHGI Stock Ownership for 2012
Number of shares owned = 19,057,500

Stuckert links:
http://jstuckert.hilliardfc.com/
http://www.forbes.com/profile/james-stuckert/
http://www.uky.edu/Trustees/members/stuckert.html
http://www.banking.senate.gov/03_05hrg/052203/stuckert.pdf

13. VHGI has an Investor Relations person who takes calls, answers emails and responds to queries.

Contact:
Jim Bender
812-268-5459