AVT Inc. (fka AVTCQ)

[236T568]

AVTC - DESIST AND REFRAIN ORDER
(For violations of sections 25110 and 25401 of the California Corporations Code)

The California Corporations Commissioner finds that:

1.Automated Vending Technologies, Inc. is also known as AVT, Inc. and AVT Vending, Inc. (“AVT”). According to the California Secretary of State, AVT is a Delaware corporation located at 2320 Whiteoak Lane, Corona, CA 92882 that surrendered its corporate license with the California Secretary of State. AVT’s current business address is 341 Bonnie Circle, Suite 102, Corona, California.

2. AVT sells vending machines and equips vending machines with televisions that can be used to for advertising. It raises capital by offering notes, warrants, stock and investment contracts to investors. The notes AVT offers promise interest rates of 10%-15% for the minimum investment of $25,000. AVT permits its notes to be converted to stock and issues warrants in connection with its notes. AVT is listed for trading under the symbol AVTC and has 35 million shares outstanding. AVT represents to investors that its stock would be trading at between $3.00 and $3.50.

3. AVT uses telemarketing companies to make “cold calls” to potential investors from a list provided by AVT. The investors acquired from the telemarketing companies lack a pre-existing relationship with AVT’s officers or directors and do not have sufficient knowledge and experience in financial and business matters to be capable of evaluating the merits and risks of the investment.

4. The investments offered by AVT including notes, stock, warrants and investment contracts constitute securities. These securities were required to be but were not qualified under the California Corporate Securities Law.

5. After AVT acquired funds from investors they had difficulty obtaining a return on their investment in the form of interest payments or their principal. AVT ceased making payments and offered a variety of excuses or avoided contact with investors.

6. AVT did not disclose to investors that in June 2007, the Texas State Securities Board issued a Cease & Desist Order to AVT for the offer of unregistered securities by unregistered sales agents. AVT did not disclose to investors that on December 14, 2010, the Pennsylvania Securities Commission issued a Cease & Desist Order to AVT based on its cold call solicitations.

7. AVT did not inform investors that AVT was not in good legal standing in California.

DESIST AND REFRAIN ORDER
(For violations of sections 25110 and 25401 of the California Corporations Code)

http://www.dbo.ca.gov/ENF/pdf/2011/AutomatedVendingTechnologies_DR.pdf