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PHI Group Signs Definitive Agreement to Acquire Majority Ownership in a Baijiu (“bye-joe”) Distiller

* Shareholder and Investor Conference Call Scheduled at 4:30 pm EST, January 20, 2022

New York, Jan. 20, 2022 (GLOBE NEWSWIRE) -- PHI Group, Inc. (www.phiglobal.comPHIL), a holding company currently engaged in PHILUX Global Funds (a group of Luxembourg bank funds), the Asia Diamond Exchange project (“ADE”) in Vietnam, mergers and acquisitions and investing in special situations (www.co2-1-0.io), is pleased to announce that it has signed an Agreement of Purchase and Sale (the “Agreement”) to acquire a seventy percent (70%) ownership in Five-Grain Treasure Spirits Co., Ltd., (“Five-Grain”) a company with over one hundred years of tradition in Jilin Province, China. This is a unique, special situation transaction that is expected to create substantial value for the Company, our shareholders and all other stakeholders.

According to the Agreement, PHI Group has agreed to acquire a seventy percent (70%) ownership in Five-Grain for a total purchase price of one hundred million U.S. dollars (USD 100,000,000), to be paid primarily in three tranches. The Closing of this transaction is scheduled to occur upon the payment of the final tranche on September 18, 2022; however, it is expected to close sooner whenever the total purchase price is paid in full. PHI Group has changed the name Provimex, Inc., one of its subsidiaries, to “Empire Spirits, Inc.” and will use this entity as the special purpose vehicle to hold the purchased equity ownership and grow sorghum for Five-Grain.

Baijiu is a white spirit distilled from sorghum. It is similar to vodka but with a fragrant aroma and taste. It is currently the most consumed spirit in the world. Mainly consumed in China, it is gaining popularity in the rest of the world. 

Five-Grain specializes in the production and sales of spirits and the development of proprietary spirit production processes. It also possesses a patented technology to grow red sorghum for baiju manufacturing. The patented grain produces superior yield and quality. Five-Grain is a reputable bulk alcohol supplier to some of the largest spirits companies in the world.

According to the new Five-Grain/Empire Spirits development plan, the companies will follow a three-prong growth strategy: (1) grow sorghum using its proprietary seed and technology, (2) ferment and process sorghum to produce bulk spirits and supply to other beverage companies and (3) develop its own brand using proprietary manufacturing methods and preferred distribution channels. By reaching these goals, Empire Spirits would be able to generate an average of $3.5 billion in revenues and $1.6 billion in net profit per year from operations during the first two years.

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PHI Group Signs Definitive Agreement to Acquire Majority Ownership in a Baijiu (“bye-joe”) Distiller * Shareholder and Investor Conference Call Scheduled at 4:30 pm EST, January 20, 2022 New York, Jan. 20, 2022 (GLOBE NEWSWIRE) - PHI Group, Inc. (www.phiglobal.com, PHIL), a holding company currently engaged in PHILUX Global Funds (a group of …

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