PHI Group Inc. (OTC:PHIL), a management services company with a market capitalization of $9.37 million, has entered into a significant asset management agreement with an unnamed ultra-high-net-worth investor group. According to InvestingPro analysis, the company currently maintains a weak financial health score but shows promising growth potential, with analysts expecting improved net income this year.
On Monday, the subsidiary of PHI Group, Philux Global Advisors, Inc., signed the contract to oversee an investment fund worth $90 million. The arrangement spans five years with an automatic renewal clause for additional five-year terms unless terminated.
The management agreement stipulates that Philux Global Advisors will receive a 2% annual management fee based on the principal amount and will be entitled to a 30% share of the profits generated from the investment fund. This deal supersedes any prior agreements with the investor party. While the company wasn't profitable in the last twelve months, InvestingPro data indicates analysts expect profitability to improve in the current year.
The company has disclosed 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. Additionally, funds are earmarked for the commercialization of a geomagnetic energy program under Philux Global Energy, Inc. PHI Group anticipates a partial closing of the deal before Christmas 2024, with the remainder expected by January 17, 2025.
The financial details of the asset management agreement are under strict confidentiality and will be provided directly to the Securities and Exchange Commission, as per the non-disclosure agreement. This strategic move by PHI Group, which trades under the symbol OTC:PHIL, highlights the company's expansion into asset management for high-net-worth investors and its involvement in international development projects.
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This substantial financial commitment comes as part of an addendum to previous consultancy agreements, acknowledging Dr. William's crucial role in the development of their ambitious ventures. These ventures include the establishment of a Luxembourg Bank Fund and an Asian Diamond Exchange in Vietnam. The payment schedule for this hefty consultancy fee will be determined separately by both parties involved.
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