NEW YORK, Sept. 08, 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 signed an agreement with Milost Global, Inc., a U.S. private equity firm, for a commitment of up to $100 million to finance the Company’s future acquisitions and provide for working capital needs. Investment in the amount of USD 50 million will be as equity and USD 50 million as loans.
According to the agreement, Milost is willing to invest $15 million for working capital needs of PHI Group, which amount can be drawn down in tranches at a minimum of $500,000 until fully utilized. Milost will receive shares of common stock in PHI Group for the equity investments with a price per share on the basis of 10-day’s Volume-Weighted Average at a discount of 20% at the time of issuance. The first drawdown will be made in the next five days.
Henry Fahman, Chairman and CEO of PHI Group, Inc., said, “The funding commitment from Milost will greatly enhance our ability to execute our acquisition program and provide for working capital needs to ensure smooth integration of target companies and implement tailor-made initiatives at the subsidiary level that can generate significant value for our shareholders.” Henry added: “We will prudently balance the mixture of debt and equity to optimize our financing and investment decisions based on the merits of selective transactions.”
Ronald Spratt, President and CEO of Milost Global, Inc., stated, “I am excited to put my money behind Henry Fahman, CEO of PHI Group, Inc. It is our plan to support Henry's efforts at this juncture to ensure that PHI's business plan is fully funded. We continue to look for companies like PHI, where there will be good use of our capital.”
Nigel Buxton, CFO of Milost Global, Inc., commented, “This investment presents an important opportunity for both PHI Group Inc. and Milost Global Inc. to actively participate in the field of new acquisitions.”
