CC Notes - 3/15
1) Safe Harbor Statement
2) Showed some forms/info that some of our sleuths had already posted here as DD. Good job ladies and gents.
3) LuxFund - Registered on 6/11/2020. Officially the first ever bank fund for investment in Vietnam. Fund size started with 1.3 billion in commitments and interest. Expected to grow to 5-10 billion within 5 years.
4) There will be a number of compartments - Real estate/hospitality projects, renewable energy, agriculture, healthcare and decentralized finance (crypto). Management fee is 1.5%.
5) The DMCC is about 200 hectares. There are 15,000 companies registered in the zone, 600 retail outlets and 60,000 employees. This is the model for what PHIL wants to do in Asia (Long Thanh Multi-Commodity Logistic Center).
6) Henry was in Vietnam looking at the 200 hectares of land earmarked for us when a new opportunity came up in South Vietnamese. They are building an airport with a hub similar in size to Singapore or Hong Kong. Instead of the 200 hectares that we were earmarked for, we applied for 600 hectares in this area (The Pearl?). This 600 hectares will include an international financial center, hi-tech industrial area and an urban area to cater to the needs of the Long Thanh Multi-Commodity Logistic Center.
7) Vietnam is an emerging market in Asia. They are aiming to be upper middle class by 2035. It's one of the fastest growing economies with an average of 7% annual GDP growth and a stable to positive credit rating. "Booming infrastructure, energy and construction."
8) China used to be the largest trade partner with Vietnam. Now it's the US. This is expected to continue for the foreseeable future.
9) Japan is the largest in terms of direct investors in Vietnam but this is expected to shift to the US following normalized relations between the two countries.
10) Vietnam is next to China in terms of infrastructure development and a spending percentage of their GDP. They are leading in global commodity growth, the consumer market, and are also expanding their tourism trade while being see as an all around cheaper alternative to China.
11) Can't say too much about relationships with strategic partners due to a NDA in place.
12) Dubai is doing 37 billion a year in rough and polished diamonds and have an advantageous tax system. China has a couple of diamond exchanges but there is no "official" diamond exchange in China. Israel has a rough and polished diamond haul. This is not an overnight project. It will take a long time. Dubai started in 2003-2004 and is still continuing to develop. We are building the foundation but this project is going to develop over the years. We want major progress on our core projects first.
13) Q&A via e-mailed questions again. Most of the questions and concerns were about the R/S and further dilution and buy back.
------ The R/S - we don't want to do a reverse split. Its the last thing we want to do. We want to buy back as many shares as possible. The R/S can and MAY be done ONLY when and if there is a VERY special situation that can be a sure, almost guarantee to provide a chance for shareholders to benefit from it. For example if there is something that is going to bring us to Nasdaq or the NYSE, a R/S would split. But just going out and doing it but not doing anything to benefit the stock would be a disaster. We've already learned the hard way. Deep in his heart, he does not want to do an R/S. Please don't worry about it, it's not going to happen anytime soon unless there is something that really, really warrants it.
------ There has been more conversion from one particular noteholder. Henry talked to him Friday and today. He's going to have a more detailed conversation tomorrow. He's the only one left. Henry is working on it.
------ Henry, to date, has not OFFICIALLY booked in shares as being bought back yet. He wants to be able to share that info soon when it's official. He can't give out numbers until it's official.
------ Revenue was not listed in 2019 because although we did receive payments, they were not booked that way (booked as an obligation) because those payments were part of the participation of our partners in Vietnam that want to join our subfunds. When the time is due, we can reclassify those amounts as revenue.
------ The rest of the fins... we want to have them done by the middle of April so we can file as current.
------ The purpose of the next trip to Vietnam is to work with the ministry and government of the province on the launching of the ADE. It's an involved process. There are international bodies and trade participants as well as local laws and regulations. Without our partners, we wouldn't be able to do it ourselves. We are lucky to have that support. It's been going on for more than three years now.
------ Henry will explain more about the Gildex/crypto later on. There isn't much concrete about it yet and he wants to be able to share it with the bank. He's still working on it, hasn't given up on it yet. He also wants to focus on the LuxFunds and ADE for now.
------ Working on finishing the Vina audits so we can add the revenues to our books. It will take more time, but it will get done.
------ Might be another CC in the next week or two.
