PHI Group Update from CEO Henry Fahman August 29, 2017

healthcare - pharmaceutical
PHI Group Forms Subsidiary, Signs LOI to Acquire European Pharmaceutical and Medical Device Distribution Company
August 28, 2017
gold mining
PHI Group’s Subsidiary American Pacific Resources, Inc. to Acquire Majority Interest in 400-Acre Mining Claims
August 31, 2017
PHI Group Update

Dear Valued Shareholders,

Our primary strategy is acquire target companies in attractive industries with big, growing markets and use them as platforms for further consolidation to create long-term value for our shareholders.  We also invest in special situations that potentially yield superior short and medium-term return on investment.

Current Transactions

We have just announced a Letter of Intent to acquire a 20-year old profitable pharmaceutical and medical device distribution company in Europe and are in the process of completing ongoing due diligence review.  We plan to sign a definitive purchase and sale agreement and close this transaction in six to eight weeks.  The closing of this transaction will allow us to immediately consolidate revenues and profits from the target company, which will undoubtedly enhance our top and bottom lines as well as our market valuation. This acquisition will provide a platform for us to distribute organic medicinal products developed by Tho Xuan Duong JSC, a Vietnamese traditional medicine company with nearly 400 years of history and recognized by Guinness World Records.  We will also distribute innovate patented and FDA-cleared medical devices developed by American Laser Healthcare Corporation, a Delaware corporation, to European markets through this company.  I addition, we will distribute new pharmaceutical products in conjunction with our API (Active Pharmaceutical Ingredients) and drug manufacturing partners.   We will provide more information about this transaction and its detailed positive financial impact after the signing of the definitive purchase and sale agreement.

We also have other ongoing transactions in agriculture, energy, healthcare and natural resources, including the acquisition of a 400-acre farm in Bonifay, FL and a majority interest in Maxagro Farm SRL in Romania, import and distribution of wild bitter melon and sacha inchi products from Vietnam and Thailand, cultivation and processing of turmeric in the U.S., manufacturing and sale of innovative water treatment systems through our subsidiary PHI EZ Water Tech, development and construction of the 100-MW renewable energy power plant in Yen Bai Province, Vietnam, investigation of an European healthcare company for potential acquisition, purchase of 51% equity interest in a construction and building material manufacturing company in Eastern Europe, potential restructuring of an approximately $2 billion infrastructure project in Southeast Asia, and potential purchase of a majority interest in gold mine in the U.S. that is expected to go into production in three to six months. While there are many projects on the list, we will focus on the ones that can be consummated first and continue to work in parallel on those that require more time and resources.  Our goal still is to complete at least two large transactions this year.  I believe we will achieve that goal.  We will lay out the financial impacts of each of these transactions in our upcoming updates.

Financial Plan

We will continue to prudently manage our short-term obligations while working on long-term anti-dilution capital solutions. We have raised funds through convertible debts when most needed to meet some short-term objectives that will have long-term impact on our growth and have executed a plan to refinance and clear our convertible debts to prevent conversion into our stock at unreasonably undervalued prices.  As of July 11, 2017, we paid off one of our noteholders, Auctus Fund LLC, in cash. As of July 21, 2017, a convertible note with Power Up Lending Group Ltd. was paid off as well. As of August 3, 2017, we repaid one half of the convertible note dated 2/2/2017 with JSJ Investments, Inc. and reached an Standstill Agreement that JSJ would not convert any portion of the balance of this note until October 2, 2017 and we could pay off the balance in cash with their consent. On August 14, 2017 we paid off another convertible note with Power Up Lending Group in cash. We have also informed Auctus Fund, LLC and worked out a repayment plan for their other convertible note.

For long-term capital solutions, we have submitted an application with U.S. Department of Homeland Security for the EB-5 Immigrant Investor Program in order to raise $15 million for our U.S. organic farming program and have worked with major investment banks and private equity groups for project financing and direct participation in our larger acquisitions at this stage to minimize dilution of our equity while our stock is still underperforming.  We have also engaged Azure Capital, Inc. for a $10-million equity line facility at 6% discount to the market and intend to prudently use this facility for smaller acquisitions and working capital when the registration statement is declared effective by the SEC.

We will continue to provide further updates in subsequent weeks and lay out financial impact of the current transactions as well as provide guidance on valuation of each business deal going forward.

Thank you for your time and I appreciate your patience while we build our Company. I will keep you informed…

With kindest regards,

Henry Fahman
CEO
PHI GROUP, INC.