PHI Group Update from CEO Henry Fahman August 8, 2017

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PHI Group Update from CEO Henry Fahman August 8, 2017

CEO Update

Dear Valued Shareholders,

Over the last several months, we have released a number of news releases pertinent to our business. While news is intended to inform shareholders and the investment community overall, I wanted to take a few moments to go into some more specific detail regarding developments with our Company as well as our plans going forward. This may take several updates to get through everything we are working on at this time.

Our stated goal at the beginning of this year was to complete at least two large transactions. I believe we will achieve that goal.

However, first before discussing the business side of PHI Group, I want to lay out our strategy for maximizing shareholder value in our company…

Convertible Debt Elimination

Convertible debt is a double-edged sword and more often than not, a killer of microcap companies. We have raised some funds through convertible debts when most needed to strategically execute a number of short-term objectives that will have long-term impact on our growth, such as establishing the EB-5 program, making a down payment for farmland, providing for pre-acquisition expenses, etc. However, we realize that no matter how much we accomplish on the business side, it will be more than offset to the downside by debt conversions. Therefore, we have executed a plan to clear all of our convertible debt.

As of July 11, 2017, we paid off one of our noteholders, Auctus Fund LLC, in cash. We were able to clear a balance of over thirty two thousand dollars, plus pre-payment premium and accrued interest. Actus Fund no longer has any shares to sell into the marketplace at the present.

As of July 21, 2017, a convertible note with Power Up Lending Group Ltd. has been paid off as well. Moreover, we have notified Power Up in writing and will also pay off the note dated 2/23/17 with this firm by 8/22/17. Like Auctus, we do not want them to convert debt into equity and sell it into the market.

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.

We will continue to manage the outstanding convertible debt balances and set a priority to pay them off in cash instead of allowing conversion into our stock while our stock price is still extremely undervalued in our opinion.

Having our market clear of the dilution of convertible debt will allow our stock to perform in a normal way rather than constantly decrease in value under the incessant dilution of debt conversions.

In addition, we issued an 8K on 26 July, which detailed the transactions on the debts described above. As indicated in the 8K report, on July 25, 2017 I converted $300,000 owed to me through the Company to 20 million shares of restricted stock. This transaction was a reflection of my confidence in our Company going forward.

Finally, we would want to alert our shareholders that the Company has recently been working on some very sizable transactions and business opportunities that may have extraordinary impact on our fortunes both in the short term and long term.

As these updates continue in subsequent weeks, I will lay out further details of our business strategy and current transactions when they are ready to report, as required by the Securities and Exchange Commission, as well as attempt to provide some 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…

Regards,

Henry Fahman
CEO
PHI GROUP, INC.