PHI Group Inc. (OTC:PHIL), a management services firm, has entered into a $25 million consultancy agreement with Dr. D’Orleans de France Benedict Carl William, also known as Ben Carl Smet, to further the development of various ventures in Vietnam, including a bank fund and diamond exchange.
The agreement, effective as of June 27, 2024, outlines the consultant's role in assisting PHI Group with the establishment of a compartmentalized regulated/unregulated bank fund in Luxembourg, the Asian Diamond Exchange, and the International Financial Center in Vietnam. These initiatives had been underway since 2017, with significant contributions and financial backing from the consultant.
Dr. Smet has been instrumental in the creation of the Luxembourg bank fund, Philux Global Funds, which received full approval from the Luxembourg Bank Regulator on May 22, 2020. He has also been leading the setup of the Asian Diamond Exchange since January 2018, bringing together major industry players and ensuring compliance with the Kimberly Process Certification Scheme to prevent conflict diamond trading.
The agreement includes a five-year term with provisions for termination by either party with 60 days' notice. Compensation for the consultant's past and future services is set at $25 million, with a payment schedule to be mutually agreed upon.
The consultant's responsibilities extend to maintaining engagement with the diamond industry's key players, securing Vietnamese KPC requirements, and advising PHI Group on necessary steps to ensure the success of the ventures. Additionally, Dr. Smet has initiated a project to establish an International Financial Center on Thanh Da Peninsula, aiming to replicate the success of similar projects he has led in Dubai.
The partnership also envisages the establishment of a financial institution in Botswana, with the consultant pledging to donate 50% of his voting shares to PHI Group upon fulfillment of financial obligations.
This consultancy agreement is a significant move for PHI Group as it seeks to expand its operations in Vietnam and establish a foothold in the global diamond trade and financial services industry. The full agreement is detailed in Exhibit 10.1 of the 8-K filing with the SEC.
The information for this article is based on a press release statement.
InvestingPro Insights
In light of PHI Group Inc.'s (OTC:PHIL) recent $25 million consultancy agreement aimed at advancing various ventures in Vietnam, including financial and diamond exchange initiatives, a closer look at the company's financial health and market performance provides valuable context for investors. According to InvestingPro data, PHI Group currently has a market capitalization of $14.06 million. While the company's ambitions are high, its revenue for the last twelve months as of Q3 2024 stands at a mere $0.01 million, highlighting a dramatic revenue decline of 80%. This underscores the challenges PHI Group faces as it seeks to transition into new ventures and markets.
InvestingPro Tips suggest that PHI Group's stock has experienced significant volatility, with a price total return of -57.14% over the last year, yet showing a 50.0% year-to-date price total return as of 2024. This volatility may be indicative of the risks associated with the company's ventures and the market's reaction to its strategic moves. Furthermore, with short-term obligations exceeding liquid assets and the company not being profitable over the last twelve months, investors may need to exercise caution.
For investors seeking a deeper analysis of PHI Group, additional InvestingPro Tips are available, including insights into the stock's performance over different time frames and financial metrics that could impact investment decisions. With PRONEWS24, users can get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription to access these valuable insights. There are currently 8 additional InvestingPro Tips listed for PHI Group, which can be found at: https://www.investing.com/pro/PHIL.
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