Amfil Technologies Inc Provides Update On Snakes & Lattes Arizona Project and Discusses Potential AcquisitionsPress Release | 03/04/2018
Amfil Technologies Inc. (OTC Pink: AMFE) is pleased to provide an update on recent Snakes & Lattes Inc developments relating to its expansion plan into the United States, franchising, and potential acquisitions in the publishing and distribution space.
Brick & Mortar Locations:
Snakes & Lattes Inc. has received back a signed LOI from the landlord of a key property in Tempe, Arizona. This brings Snakes & Lattes Inc. one step closer to breaking into the US market. Ben Castanie, President of the Snakes & Lattes Inc. subsidiary will be flying down to meet with the landlord this coming Thursday March 8th 2018 with intent to finalize the lease. We are optimistic on the deal closing, and if so, focus will immediately shift to bringing the first Arizona location online which has already been fully funded for the complete build-out. An architectural design firm has been selected and construction will begin on this location as soon as the drawings and design layout have been completed with a targeted opening date of late Summer 2018. The selection process for the initial Game Gurus, managers, and general staff has already commenced with a number of promising candidates expressing their interest to join the team once the operations are further solidified.
The original plan was to sell a master franchise to begin the regional foothold, however Snakes & Lattes Inc. management has instead opted to enter an agreement with a local investor who will fund this as a Corporate Owned location which will also act as a franchising, training, and distribution hub for the Southwestern region of the United States. This will provide the company, with an ongoing relationship with this same person, allow for additional location targets in the region to be captured with enhanced oversight on the operations of the future franchises in the area and give us greater ability to provide support and training. The corporate owned location will also oversee the distribution business in the Southwestern region.
Tempe, AZ is well-positioned as a key market in the Southwestern United States, boasting high density of key demographics and high-volume foot traffic areas. Tempe is home to Arizona State University (ASU), a campus with 72,000 annual enrollees as of 2016, and Rio Salado College with close to 50,000 annual enrollees. In addition, there are a number of college and university campuses within a less than 20 minute drive from Tempe including (but not limited to);
Grand Canyon University with over 70,000 annual enrollees
Glendale Community College with over 30,000 annual enrollees.
Mesa Community College with over 20,000 students annually.
In our estimation, there are well over 250,000 college students annually at campuses anywhere from walking distance to a 20 minute drive from the Snakes & Lattes Tempe location. This bodes well for the location as students make up a high percentage of Snakes & Lattes key customer demographic.
Development of a Corporate Owned brick & mortar location in the Southwestern U.S. will provide a foothold in the US market, create a launchpad for further retail expansion into California, Colorado, Utah, Nevada as well as other key states, and create an inroad into the development of US distribution centers in conjunction with existing shipping partners in the United States.
Additionally, Snakes & Lattes management continues to work with its partners at CBRE Limited to locate and secure properties within Canada, further showing commitment to concurrent, stable growth within the American and Canadian markets. Hamilton, ON and Waterloo, ON franchises have been sold and are in the process of locating, selecting, and obtaining prime locations. The company intends to await the availability of suitable locations as opposed to opening in locations not aligned with the standards of the brand. Additional areas are also currently being looked at for additional Snakes & Lattes Inc. locations.
Snakes & Lattes Inc. Midtown, the third and largest location to date that opened in Toronto, ON received its liquor license this past week and has begun serving alcohol as of this past Friday. This is exciting for the company as alcohol purchases at the other locations make up approx. 50% of total sales with healthy margins so this event is expected to further drive increased revenues out of this location.
Potential Acquisitions:
Snakes & Lattes Inc. is currently in initial discussions with two companies that have expressed interest to be acquired by Snakes & Lattes Inc. The first is one of the largest board game distributors in Canada, and the second is a distributor and publisher in Europe. As the company expands into the USA, the company will be looking at a potential acquisition of a distributor in a key location in the USA, in addition to our own planned distribution center in Chicago, IL. The strengthened US distribution arm would serve as a satellite to complement the initial Northern offices and warehouse in Chicago, and the South Western presence in Arizona.
Further updates relating to the expansion of the Snakes & Lattes brick and mortar locations, as well as the potential acquisitions in the publishing and distribution sectors will be announced as they develop. The company is very excited with the recent developments in terms of US expansion and remains steadfast in its commitment to increase its reach throughout North America and beyond.
