PHI Group Inc. (PHIL), a management services company with a market capitalization of $23.44 million and an impressive 150% year-to-date return, has announced an amendment to its existing asset management agreement with an undisclosed ultra-high-net-worth investor group. The amendment, documented on December 27, 2024, modifies the terms of the original agreement dated February 14, 2024, managed by Philux Capital Advisors, Inc., a subsidiary of PHI Group.
The changes rescind the first amendment to the asset management agreement, rendering its contents null and void. The new terms include an increase in the investment fund to a maximum of $750 million, to be transferred to a designated account at an international financial institution, compliant with all applicable laws and regulations.
According to InvestingPro analysis, the company maintains moderate debt levels and operates with relatively low stock price volatility, potentially appealing to institutional investors.
Additionally, the contract's renewal terms have been adjusted to allow for automatic renewal every five years, unless either party opts out with a six-month notice prior to the end of the current term. The amendment also specifies three initial accounts to hold the investment fund, which will later be segregated into separate accounts for the investor's benefit.
Due to confidentiality agreements between the parties, a hard copy of the second amendment will be submitted directly to the Securities and Exchange Commission. The details of these amendments were disclosed in an 8-K filing with the SEC, ensuring transparency with regulatory authorities and investors.
This modification signifies PHI Group's ongoing relationship with the investor group and its commitment to adjusting its management strategies to accommodate the evolving needs and agreements of its high-net-worth clients.
While currently not profitable, InvestingPro data indicates analysts expect net income growth this year. The company's stock is traded on the OTC Markets under the symbol PHIL. This report is based on a press release statement. Get access to 8 more exclusive InvestingPro Tips and comprehensive financial metrics to make informed investment decisions.
In other recent news, PHI Group Inc. has been involved in several significant financial developments. The management services company has entered into a $90 million asset management agreement with an unnamed investor group. The contract, signed by the subsidiary Philux Global Advisors, spans five years and includes a renewal clause for additional five-year terms. According to InvestingPro analysis, despite a weak financial health score, the company shows promising growth potential, with net income expected to improve this year.
In addition to the asset management deal, PHI Group has committed to a $25 million consultancy fee for Dr. D'Orleans de France Benedict Carl William. This commitment is part of an addendum to previous agreements and recognizes Dr. William's crucial role in the development of a Luxembourg Bank Fund and an Asian Diamond Exchange in Vietnam.
These recent developments highlight PHI Group's expansion into asset management for high-net-worth investors and its involvement in international development projects. The company plans to allocate a substantial portion of the investment fund towards the initial development of the Asia Diamond Exchange and the International Financial Center in Vietnam.
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