FT. WORTH, Texas, Feb. 22, 2012 /PRNewswire/ -- VHGI Holdings, Inc. (OTC.QB: VHGI) announced today that its wholly-owned subsidiary, VHGI Coal, Inc. has completed the acquisition of all of the stock of Lily Group, Inc., and in connection therewith, Lily Group has secured a $13,000,000 debt financing in order to refinance certain existing debt of the Company, pay vendors, pay costs of the transaction and for short-term working capital purposes.
"This is an important step in the development of our business plan," said Doug Martin CEO of VHGI. "Our initial goal was to complete this transaction in our Q1 of 2012, which we have accomplished. Our next goal is to close additional debt financings for Lily Group in order to pay-off certain indebtedness, exploit current mining operations and possibly acquire other coal mining opportunities," stated Mr. Martin.
Mr. Rick Risinger, President of Lily Group, also commented, "This is exactly why we chose Mr. Martin and VHGI Coal to be our partners. They have the financial expertise and wherewithal to bring what we needed to develop our mine. We look forward to exploiting our opportunities at the Landree Mine, as well as other coal mining opportunities."
Mr. Martin further commented, "Both Mr. Risinger and I would like to formally thank all the vendors and contractors whose patience with us throughout the construction phase of this mine allowed us to complete the financing while producing and shipping coal to our customers. We could not have done this without them."
VHGI Holdings has filed a Form 8-K with the Securities and Exchange Commission setting forth the material terms of the above debt financing.
About VHGI and VHGI Coal
VHGI is a diverse company with assets and interests focusing on opportunities within the Healthcare Technology Industry, Precious Metals, Energy and Mining Markets. VHGI Coal is a wholly-owned subsidiary of VHGI, focusing on the coal mining 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.
SOURCE VHGI Holdings, Inc.