Cafe Serendipity Holdings Inc. (CAFS)

[lesgetrich]

The share exchange agreement between MCIG and CAFS (previously FOFU) states the following...

9.3 Unwinding of Share Ownership . In the event that FOFU does not sell a minimum of Twenty-Five (25) franchises in the eighteen months from the date of this Agreement, at the sole discretion of MCIG, all MCIG Shares shall be returned to MCIG for cancellation and MCIG will return an equal (in value up) number of FOFU Shares to FOFU. In the event the FOFU Shares held by MCIG exceeds the value of the MCIG shares returned, MCIG shall retain the difference.

The Chair of CAFS stated recently in an interview that he expects to have 60 to 75 stores/dispensaries signed up by the end of the year. They currently have 20 sales reps and expect to have 50 by July.

They currently have signed agreements with three dispensaries that are currently in operation but will not be formally rebranded as Cafe Serendipity until later this quarter.

CAFS will receive revenue not only from Franchise Fees but also a percentage of product revenue as well as commissions from MCIG for product sales. Those MCIG product sales aren't restricted to franchisees. In the process of selling franchises CAFS reps may also sell MCIG products and services to their prospects, bringing in additional revenue. CAFS will additionally be receiving revenues from their own products, such as POS software and consulting services that they provide.