Generation Next Franchise Brands Inc. (fka VEND)

[Alvie]

VEND has just executed two loans for $250,000 each from a lender 20% owned by Yates. The notes bear interest at about 20% per annum.

The first note of $250,000 is secured by the company's 50 micro markets and will be repaid by selling the micro markets over a period of 18 months or less. Repayment is based on the sale schedule but will amount to some $370-$375k versus the $250,000 borrowed (assuming the 50 markets are sold over the 18 month loan period; if they could all be sold in the first 6 months the repayment would total $310,000.)

The second $250,000 note is repayable over 12 months based on franchisee royalty payments and would provide $300,000 total repayment (20% interest on the loan value over a 1 year period).

Not saying whether these are good deals or bad deals, only trying to state the facts as set out in the agreements. The spate of late day buying would make it appear that someone regards these as positive (if they had all the facts when they bought).