PHI Group completes land acquisition for Florida pellet project

PHI Group, a U.S. public company engaged in energy and natural resources, recently announced that the company has completed the acquisition of 10 acres of land from Klausner Holding U.S.A., a Georgia corporation, for the Cornerstone Biomass Corp. 200,000 metric ton wood pellet project in Live Oak, Suwannee County, Florida. This parcel of land is adjacent to Klausner Lumber One, one of the largest lumber factories in the United States and a preferred source of feedstock for our wood pellet mill.

Cornerstone Biomass has diligently vetted the required equipment and machinery, product end users, potential logistical partners, and additional financing sources for this project. At the same time, PHI Group is in the process of raising $60 million through a private placement under the auspices of Regulation 506(c) and plans to use a portion of the proceeds for the Cornerstone Biomass renewable energy development program. It is anticipated that this wood pellet mill will generate approximately $42 million in revenues and $9 million in profits before interest, taxes, depreciation and amortization (EBITDA) per year when running at full capacity.

On another note, the company had very successful meetings with its Singaporean and Vietnamese partners during the final weeks of July 2015 to coordinate the logistical details for shipping reclamation sand from Vietnam to Singapore for land extension projects.