PHI Group, Inc., (www.phiglobal.com; OTCQB: PHIL), a company focused on acquisitions and investments in natural resources, energy, agriculture and special situations announced today that it has signed a Memorandum of Understanding with Romania-based Maxagro Group with annual revenues of approximately EUR 30 million. The alliance intends to develop an organic farming program in Timis County, Romania (www.maxagro.ro).
According to the Memorandum of Understanding, Maxagro and PHI Group will consider a number of possibilities that may facilitate mutual growth, including:
– Potential acquisition of a majority interest and investment in Maxagro by PHIL;
– Recapitalization of and raising capital for Maxagro to acquire additional farmland and grow its business as may be needed;
– Taking Maxagro public in the U.S. and European Stock Markets, either directly or indirectly, to create a platform for Maxagro to access the capital markets for further growth and expansion;
– Introducing new products and technologies to Maxagro;
– Transferring of farming technologies and organic farming techniques to Maxagro to potentially improve and grow its business;
– Introducing new markets for Maxagro’s products; and
– Assisting Maxagro in its corporate strategy through internal growth and mergers and acquisitions.
Ianco Zifceak, Founder and Chairman of Maxagro Group, stated, “We look forward to working with PHI Group to access international capital markets in as well as take advantage of existing acquisition opportunities, further grow our business and also develop our own organic farming program which we believe will add significant enterprise value in the long run.”
Henry Fahman, Chairman and CEO of PHI Group, Inc., said, “We are very impressed with Maxagro’s management, operation and track record and strongly believe that by cooperating with each other we will be able to combine our strengths to create additional value for both companies otherwise not possible.”
About PHI Group
PHI Group (www.phiglobal.com) primarily focuses on acquisitions as a principal and invests in select industries and special situations that may substantially enhance shareholder value. PHI Group also provides merger and acquisition advisory services through its wholly owned subsidiary, PHI Capital Holdings, Inc. (www.phicapitalholdings.com)
About Maxagro Group
Founded in 1993, Maxagro Group currently cultivates approximately 12,000 hectares for agricultural products and owns a livestock farm for dairy built according to the latest standards. Maxagro has advanced farming machinery and equipment, 10 silos for grain storage with a capacity of 2,500 MT each and a hall for storage with a capacity of 12,000 MT. Maxagro is capable of managing over 50,000 hectares of farmland in Timis and surrounding counties. Website: www.maxagro.ro
This news release contains forward-looking statements that are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of such forward-looking statements pursuant to the “safe-harbor” provisions of the Private Securities Litigation Reform Act of 1995.