FORT WORTH, Texas, May 16, 2011 /PRNewswire/ -- VHGI Holdings, Inc. (OTCQB: VHGI - News) announced today that it has released a letter from its CEO, Douglas P. Martin, to update the shareholders on the current status of the company.
As newly appointed CEO of VHGI Holdings, I am pleased to provide you with an update on behalf of our management team. Much has happened over the prior 12 months and I would like to take this opportunity to discuss our vision going forward while also recapping the prior year accomplishments.
As you know, VHGI is made up of three wholly owned subsidiaries: VHGI Gold, VHGI Energy, and Medical Office Software.
Last year, 2010, was a transition year for us as we placed key personnel in each of these operating companies. With my joining the company one month ago, we now have a four-person board of directors and are currently seeking and speaking to proposed members of a future advisory board. It is our plan to continue to search out talent at all levels of management and expertise to allow for the growth and productivity necessary to bring greater value to our companies to you, our shareholders.
Within VHGI Gold, this talent acquisition process led us to the completion of the purchase of the Sun Gold and Treasure Gulch gold mining properties. With this accomplished, we quickly completed the process of compiling a geologic team whose objective is to complete the geophysical exploration necessary to plan a mining operation, which we hope will allow for permitting and eventual full-scale mining operations.
Our VHGI Gold team has just recently expanded the Sun Gold claim group from four claims to 28 claims and over 500 acres. We are also evaluating other mining prospects, with the desire of forming a JV or partnership with a producing or ready-to-produce project, which will allow us to achieve potential cash flow opportunity in the near term.
On the VHGI Energy side, we are progressing within the due diligence process on multiple oil and gas targets, along with budgets and scheduling. Our overriding goal is to mitigate our risk by working into a phased project which will allow us the opportunity to realize cash flow while the project grows to its full potential. We hope to have targeted the best possible project and to have an agreement in place within the next several months.
We realize that our mining interests (VHGI Gold) demand a longer term investment, but, we also believe we can bring increased value to the project simply by staying the course. Meaning as we continue our exploration we can show better proof of the resource. We also believe that by entering into a phased oil / natural gas project (VHGI Energy) can fast-track us to cash flow positive and add value to the overall company. Our focus will be on these assets and resources, we plan to divest ourselves of the noncore assets.
Beyond our new endeavors I have spoke on above, for twenty-seven years Medical Office Software (MOS) has proved support to the small and mid-size medical practice. As mentioned, 2010 was a year of transitions for VHGI Holdings and MOS was no exception. Due to the ever changing world of technology, MOS set a goal of restructuring and reassessing the organization. Restructuring the MOS organization was paramount to a successful future. There were some key personnel changes that streamlined our revenue structure. In addition, a complete organizational reassessment was completed in order to offer additional revenue generating options to our clients. In 2011, MOS will continue to assist our customers as we did in the past while we offer new ways for the medical practice to run more efficiently.
Now that we have our plans in place, our center of attention is producing revenues by year end. We believe this is very attainable. We recently took our websites down to make sure that the information was up to date, and to ensure consistency and accuracy. As of today, we have launched our updated sites and invite you to visit us regularly to keep up to date on our progress.
I want to thank you for your support and patience. We are working in an extremely uncertain economy and know that capital needs in some cases can appear to outweigh the certainty of success. We are in a position now like at no other time in our history to bring our operational plans to life. We believe this a reality, and know that without your continued support none of this would be possible.
Douglas P. Martin
Chief Executive Officer
About VHGI Holdings, Inc.
VHGI Holdings, Inc. ( OTCQB: VHGI) is a diversified company with assets and interests focusing on opportunities within Precious Metal Mining, Energy Resource (Oil and Natural Gas exploration) and Healthcare Technology markets. VHGI Holdings is actively pursuing new opportunities within these industries to maximize shareholder return. It is our goal to increase our revenue streams without adding significantly to our fixed costs through corporate involvement with different performance based sectors of the economy through VHGI Gold LLC, VHGI Energy LLC and Medical Office Software, Inc.
VHGI has recently initiated steps to leverage the company's unique position and corporate resources within the mining, energy development and medical technologies industries and intends to pursue these opportunities through Lease-Purchase, Acquisition, Joint Ventures and other structures.
"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.
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SOURCE VHGI Holdings, Inc.