LAS VEGAS, NV and HANOI, VIETNAM--(Marketwire - Nov 19, 2012) - PHI Group, Inc. (OTCQB: PHIL), a company focused on energy and natural resources, today announced that its formerly majority-owned subsidiary HP.ITA Corporation, a Nevada corporation, has signed a rescission agreement to terminate a merger agreement with Vietnam-based HP.ITA JSC. Concurrently, HP.ITA Corp. agreed to acquire 100% of HP W&I JSC, a newly formed Vietnamese company that owns two real estate development projects from HP.ITA JSC.
According to HP.ITA JSC management, this company has invested US$89.7 million in the Bao An Project consisting of three residential and commercial towers in the An Khanh Industrial Complex, Hoai Duc District and the Xuan Phuong Nursing Center and Villa Project in Tu Liem District, both in Hanoi, Vietnam.
Shareholders of HP W&I will receive newly issued shares of common stock of HP.ITA Corporation in exchange for their ownership in HP W&I JSC. PHI Group, which has begun to divest from other businesses to focus on energy and natural resources, will retain a minority interest in HP.ITA Corp.
PLS CPA conducted fieldwork last month and will continue to complete the audits of both HP W&I JSC and HP.ITA Corp for the combined company to file a registration statement with the SEC.
Richard Phan, Chairman and CEO of Phanet Holding Corp., the former parent of HP.ITA JSC, commented: "We are pleased that these actions taken will help us complete our audited financial statements and enable us to more quickly file a registration statement with the SEC to become a fully-reporting public company. This is expected to create additional value and enhance liquidity for our shareholders as well as make it be easier for investors to participate in our growth."
About PHI Group
Focused on energy and natural resources, PHI Group (OTCQB: PHIL), cooperates with local companies in Asia to develop power plants, accumulates coal assets and other natural resources, and provides advanced renewable energy technologies in conjunction with select industry partners. Website: www.phigroupinc.com/.
About HP.ITA Corporation
HP.ITA Corporation serves as a holding company for real estate investments in Vietnam, including the Bao An and Xuan Phuong projects currently owned by HP W&I JSC in Hanoi, Vietnam. Website: www.hpitacorp.com
Safe Harbor: This news release contains forward-looking statements that are subject to certain risks and uncertainties pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected, on the basis of such forward-looking statements.