Generation Next Franchise Brands Inc. (fka VEND)

[Alvie]

I think the price is being held back by their recent offer to sell 15MM (restricted) shares to qualified investors for 0.20 each to raise $3MM. They would use the funds to place 500 yogurt machines for their own benefit (Year 1) as well as franchising an additional 500 yogurt machines (Year 1)and ongoing franchising of their own Fresh Healthy vending machines. It appears they are putting their chips on the yogurt machines but need to raise funds to do it. Selling 15MM shares would increase the share count to about 43MM, a 50% increase.

The 4 machines that Reis & Irvy's have had in operation realized average revenues of $60k in 2015 (ranging individually from $32k to $95k). VEND anticipates the yogurt selling for $5/cup, which seems a bit rich to an old fart like me but maybe not so to the younger crowd.