FT. WORTH, Texas, Jan. 9, 2012 /PRNewswire/ -- VHGI Holdings, Inc. (OTC.QB: VHGI) announced today that its wholly-owned subsidiary, VHGI Coal, Inc. ("VHGI Coal"), has entered into a definitive Stock Purchase Agreement to purchase all of the capital stock of Lily Group, Inc. ("Lily Group") from Paul R. Risinger ("Risinger"), the sole shareholder of Lily Group. Mr. Risinger will continue to serve as President of VHGI Coal and shall remain a key shareholder going forward. Prior to the execution of the stock purchase agreement, VHGI Coal has loaned over $5,500,000 to Lily Group to fund its operations and expansion.
The closing of the transaction is subject to certain conditions precedent, including receipt of consents and approvals, completion of due diligence and VHGI Coal having secured adequate financing for the transaction. All of these conditions of closing are within the control of VHGI Coal, which VHGI Coal can waive in its sole discretion. The parties intend to close the transaction as soon as possible, with a drop-dead date of February 1, 2012. There can be no assurances that the transaction will be consummated, or if consummated, the final terms thereof.
Doug Martin, CEO of VHGI Holdings said of the acquisition, "We are pleased to have entered into the definitive agreement with the Landree Mine coal mine as it will be the linchpin of our plan to be a significant player in the Mid-Western Coal mining market. The Landree Mine became operational under the superb leadership of Rick Risinger. With the help and support of the Rick's management team and our dedicated Lily Group employees, our plan is to extract over 21 million salable tons of coal onsite while using our company's cash flow to acquire and develop other coal opportunities, first in Greene County, Indiana and then beyond."
Rick Risinger, sole shareholder of the Lily Group said of the execution of the stock purchase agreement, "The employees of the Lily Group and my family are excited about the Lily Group becoming part of the VHGI Family of businesses. Doug Martin and Scott Haire at VHGI have been essential to the process of the Landree Mine becoming operational, in terms of both capital committed and in developing coal sales opportunities. With their assistance, we have developed significant contracts and relationships with regional and international coal buyers. From our discussions with these buyers, we are optimistic that the demand for our quality of Landree Mine coal will remain strong for the foreseeable future."
About VHGI Holdings
VHGI Holdings is a diverse company with assets and interests focusing on opportunities within the Energy and Mining Markets, Precious Metals and Healthcare Technology Industry.
"Safe Harbor" Statement:
The statements in the press release that relate to the company's expectations with regard to the future impact on the company's results from new products in development and any other statements not constituting historical facts are "forward-looking statements," within the meaning of and subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995. Since this information may contain statements that involve risk and uncertainties and are subject to change at any time, the company's actual results may differ materially from expected results. This document may contain forward-looking statements concerning the Company's operations, current and future performance and financial condition. These items involve risks, contingencies and uncertainties such as product demand, market and customer acceptance, the effect of economic conditions, competition, pricing, the ability to consummate and integrate acquisitions, and other risks, contingencies and uncertainties detailed in the Company's SEC filings, which could cause the company's actual operating results, performance or business plans or prospects to differ materially from those expressed in, or implied by these statements. The Company undertakes no obligation to revise any of these statements to reflect the future circumstances or the occurrence of unanticipated events.
For Further Information: Contact Mr. Douglas P. Martin
Shareholder Relations – Communications: (954) 548-3086
SOURCE VHGI Holdings, Inc.