Philux Global Group Inc. (OTCMKTS:PHIL) announced on August 22, 2022, that it has signed an agreement to acquire 51% of Vietnam-based Van Phat Dat Export Joint Stock Company (VPD). As per the agreement, Philux Global Trade Inc., a Wyoming company and wholly-owned subsidiary of Philux Global Group, Inc., is set to buy 5,100,000 shares of Ordinary Stock of VPD which is equivalent to 51% of all the VPD’s issued and outstanding Ordinary Stock, for a total of $US 6,127,895 to be paid by a convertible promissory note issued by Philux Global Trade Inc.
Trading Data
On Monday, PHIL stock slumped 21.05% to $0.0015 with more than 1.04 billion shares, compared to its average volume of 196.11 million shares. The stock moved within a range of $0.0015 – 0.0026 after opening trade at $0.0021.
PHI Group, Inc. Steps up M&A Activities by Acquiring Majority Interest in Van Phat Dat Export Joint Stock Company
The transaction should close by October 15, 2022, unless extended by both parties. Philux Global Trade Inc. will hold the 51% equity ownership in VPD. It also intends to file a registration statement with the Securities and Exchange Commission to become a fully reporting public company in the United States.
On August 19, 2022, Philux Global Group Inc. inked an agreement to acquire 51% of Tin Thanh Group for cash. The former would purchase 22,032,000 shares of Ordinary Stock from the majority shareholder of Tin Thanh Group, which is equivalent to 51% of all Tin Thanh Group’s issued and outstanding ordinary stock, for a total of 60 million U.S. dollars.
The closing of the transaction is anticipated to occur by October 04, 2022, unless both parties choose to extend it. Philux Global Group will select one of its subsidiaries to be the holder of the 51% equity ownership in Tin Thanh Group. This subsidiary will become public in the United States.
Key Quote
Mr. Pham Huu Tai, General Director of Van Phat Dat JSC, stated: “By becoming a part of a U.S. publicly traded company and carrying out a roll-up strategy we should be able to create a lot more value for shareholders of both companies, thanks to the market valuation of international companies in this industry. For example, An Giang Agriculture and Foods Import-Export JSC, a Vietnam-based company, (https://finance.vietstock.vn/AFX/so-sanh-gia-co-phieu-cung-nganh.htm) currently has a trailing P/E of approximately 23.40, Costco Wholesale Corporation, a leading U.S. wholesaler, (https://www.nasdaq.com/market-activity/stocks/cost/price-earnings-peg-ratios) had an actual P/E of 50.05 for 2021.
Technical Data
PHIL stock is trading above the 20-Day and 50-Day Moving averages of $.0008 and $0.0007 respectively. However, the stock is trading below the 200-Day moving average of $0. 0026. The company has a total market capitalization of $45.41 million. The stock is up 114% over the past month.
