Dear Valued Shareholders,
On Tuesday, 17 October, we announced that our majority owned subsidiary PHI EZ Water Tech, Inc. has completed the design of a new breakthrough proprietary watering systems that can save water and substantially increase yields for the cannabis industry.
I wanted to add some additional detail on how this system works:
EZ Water and its Benefits to Agriculture
The key to understanding the EZ water concept and its benefit to agriculture as well as many other applications is understanding a fourth state of the existence of water. Normally, we think of water as existing in three states: solid, liquid and gas.
This fourth state of water is known as Exclusion Zone (“EZ”) water. Normally, water is composed of two hydrogen atoms and one oxygen atom – H20. These water molecules arrange themselves randomly in water columns. EZ water is actually water molecules that have been rearranged into a set structure of three hydrogen atoms and two oxygen atoms – H3O2 (Figure 1). This is essentially the creation of a “larger” water molecule.
The Process of Transforming Water into EZ Water
PHI EZ Water Tech technology was integrated, developed and further optimized by Dr. Martin Nguyen for agriculture, healthcare and human consumption.
As H2O water is transformed into the EZ H3O2 through a complex process of electromagnetic force, advanced oxidation, and ultrasound, the PHI EZ Water Tech proprietary water conditioning systems can reduce water consumption by up to 30% and fertilizer usage by 30%-50% while boosting cannabis crop yields by 30%-50%. In addition, they have been proven to substantially increase the level of active ingredients in the plants.
Once water is converted to EZ water, it has a new and bigger structure, which allows more energy to be contained in the EZ water. Conventional water has an electrical charge, but EZ ‘s energy is significantly greater.
This state of water, EZ/H3O2, allows for the presence of more beneficial microbes which plants need to grow. This technology has been used for some time now in Vietnam but is beginning to catch on elsewhere. In the graphic below, you can see a significant difference in size of leaves.
It is our expectation to be able to provide agricultural companies including both medicinal and recreational growers of cannabis our EZ Water Tech systems. Once growers are aware of the fact that our EZ water systems will result in more nutrient uptake which will result in plants that grow larger and faster (with less water), it only makes sense that our expectation of brisk sales would not be unrealistic.
Expectations of PHI EZ Water Tech over the Coming Years
As stated in my update of September 14, we are expecting PHI EZ Water Tech to generate $12.5 million in revenues and $3.4 in net profits in 2018. For 2019, the estimated revenues and profits will be $25 and $6.8 million, respectively. See more at our website at EZ Water Tech.
Thank you for your time and I appreciate your patience while we build our Company. I will keep you informed…
PHI GROUP, INC.
This update 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.