Company plans special dividend distribution of ComMatrix stock for shareholders
New York, NY, June 07, 2018 (GLOBE NEWSWIRE) -- PHI Group, Inc., (www.phiglobal.com) (OTCQB:PHIL), a company focused on mergers and acquisitions and investments in natural resources, energy, agriculture and special situations, today announced that it has formed ComMatrix, Inc., Wyoming corporation, for the purpose of designing and building telecom networks by utilizing the legacies of Gridline Communications, Inc., a Delaware company.
According to the Investment Agreement and the restructuring plan thereof between PHI Group and Gridline Communications, ComMatrix will issue Series A Preferred Stock to creditors and Series B Preferred Stock to equity and option holders of Gridline Communications. PHI Group will hold 15% of Common Stock of ComMatrix and plans to distribute at least one-third of its holding in ComMatrix as a special dividend for PHI Group's shareholders in the future. Preferred Shares of ComMatrix may be converted into Common Shares after 30 months from the date of issue, or when the latest twelve-month revenues for ComMatrix reach $15 million.
Thanks to Gridline's legacies, ComMatrix has the technical expertise to build access networks to address the "last mile" of broadband networks by tapping into the transport networks to enable local access to high-speed broadband through hard-wired or wireless connectivity. ComMatrix's network design for access networks deploy existing mediums and technologies including twisted pair, fiber, coaxial cable, microwave, RF wireless, and power lines.
ComMatrix is targeting several attractive high-speed broadband and telecom network projects in rural areas of the developed world, and throughout the developing world. The Company is in discussions with several potential projects, and looks forward to announcing these once agreements are in place.
ComMatrix's unique features include: (a) the company's access network design and implementation capabilities and (b) the innovative BPL (broadband over power line) technologies that can utilize power lines for access networks. Where feasible, integrating BPL technologies into access networks can significantly lower the cost of high-speed broadband access network deployment.
Gregory Garner, CEO of ComMatrix, stated: "There is a tremendous need for high-speed broadband throughout the developing world and in rural areas of the developed world. We are delighted to work with PHI Group for the financial assistance to address the broadband needs in ComMatrix target markets."
Henry Fahman, CEO of PHI Group, said, " We are confident that by partnering with a group of talented executives with vast knowledge and experience in broadband technologies, together we will be able to capitalize on the strengths of Gridline's accomplishments and create very significant value for shareholders of both companies as well as all other stakeholders."
About PHI Group, Inc.
PHI Group (www.phiglobal.com) primarily focuses on mergers and acquisitions and invests in select industries and special situations that may substantially enhance shareholder value. PHI Group also provides M&A and consulting services through its wholly owned subsidiary, PHI Capital Holdings, Inc. (www.phicapitalholdings.com)
This news release contains "forward-looking statements" pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected", which are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements as a result of various factors.
PHI Group, Inc.
Source: PHI Group, Inc.