Amfil Technologies Inc (FUNN)

[Plowmaster]

Back in Silicon Valley, wow what a week of developments! Be warned, this will be a LONG post from me, as I’ve been gone. So, grab your beer, edibles, favorite vaping or smoking equipment and a snack and read on if you choose!

First things first: Right after I left Roger put out a down to earth, straightforward letter concerning the current audit situation.

I personally appreciated the detailed explanation of what had transpired, his acceptance of his lesson(s) learned, and his corrective action. (CFO Squad). We learned there is nothing usual about the audit itself, no major issues with the numbers and it is simply a matter of process. Now, is it possible a more experience CEO could have handled the auditor themselves and better facilitate the process? Absolutely. Does this mean Roger is unfit to be CEO? Absolutely not. I think it is a completely asinine notion that any CEO will not have learning experiences, some more costly than others. In the scheme of things, this is not that costly to the company in the long view. Will he have future experiences he will reflect on, and think ‘Wow, I could have handled that better!’ I can 100% guarantee there will be. This does not detract from the fact Roger is a solid leader surrounded by solid leaders.

Will Roger need help as AMFE grows? Absolutely, AMFE doesn’t have a CFO yet, and the CFO Squad (Which I am to see: ‘The CFO Squad will continue to be retained throughout future audits to ensure a seamless and speedy execution and completion moving forward preventing any delays.’) is a solid interim solution. Eventually the company will need a CFO, this is the type of position that will get opened up, possibly even as a requirement part of an infusion of institutional dollars.

Like ANY growing company, people who are used to handling specific function find the functions to need their own dedicated resources. As time goes on, AMFE will hire positions like:

- VP Human Resources
- Director of Supply Chain / Logistics
- CFO / more finance positions
- Global Facilities Management
- Quality Assurance / Customer Service
- Marketing / IR
- Mergers and Acqusitions
- General Counsel

It is always a balancing act to ensure each position is set for a solid ROI and controlled. The hiring of the CFO squad is but one step in many as the company finds itself at a new scale. As the company scales and positions open, the CEO becomes more of a direction setter and less direct impact, as the tactical execution of the strategic direction rests of the shoulders of the TEAM.

There are no failures: only learning experiences. What to watch over time in people is do they learn? Do they grow? Do they adjust? I see all these things happening with Roger, and I confidently stand behind him now and for the foreseeable future.

What I see some fail to understand is: THESE ARE HIGH QUALITY PROBLEMS TO HAVE! The fact the Roger has grown the company so well to be in need of these things tells me he is doing 100 things right for every 1 learning experience.

In a nutshell: The letter was about as good as it gets for the situation. Detailed, unapologetic but taking responsibility and a solution and direction forward provided.

Next came the May 3rd tweet storms:

From an email exchange I had with Roger on April 6th, Roger stated ‘Working on the order of PR updates as we speak once audit is completed as I am so frustrated with this one negative delay’

The tweet storm was essentially a preview to all the PR’s he spoke of in that email exchange. There is just an amazing number of developments coming, in various stages of execution. Some have happened and / or in the near term, some a little longer and some in infancy or simply ideas at this point.

Another point: I always see over time opinions saying ‘Roger Lied and / or made promises he didn’t keep.’

There actually hasn’t been any point where Roger lied or made a promise on anything:

- Timing may be different than folks like.
- New information might not make what was once seen as a solid strategic development no longer
solid, and therefore change course
- Potential partners might not work out as planned

These are all normal happenings in business. Especially in any growing company with as much potential as AMFE. There will be more ideas, applications and potential developments than resources to bring them to fruition. In fact, it is key a growing company does not over dilute its resources and end up doing 10% of 10 things versus 100% of 2 or 3. It is a common mistake I see in start-ups all the time to over tax there resources and / or have irresponsible use of funds.

The ROI Roger obtains on his acquisitions and general fiscal responsibility is outstanding. He doesn’t over extend and doesn’t unnecessarily dilute. I greatly appreciate the attitude Roger has when it comes to financial management, this will carry on a long way. Don’t just think now, but in AMFE’s lifetime, we are bound to hit a correction or recession as well. This kind of fiscal management (and AMFE’s general diversity) will help ensure its ability to withstand and thrive during such times.

As for the upcoming PR’s themselves, we can take some general thoughts on each of the subs:

Snakes and Lattes:

- The acquisition of Morning games and the beginning of EU distribution
- Bigger recurring orders from Big Box retailers
- Self-Publishing
- Increased SKUs for exclusive distribution rights
- First Corporate Location in USA within months
- Continued signing of franchise master agreements

The business model has already proven itself and will only continue to get bigger and better. Once on a higher exchange, institutional money will start getting in on the action and truly begin the accelerate #worlddomination.

GRO3:

Yes, it has been all too long since we had massive meaty updates. We know the sales force has been increased, there have been deals struck, but for various reasons we have not received all the details yet. We will soon!

From the tweets and related articles of Colombia reinventing its infrastructure in the new economy of weed, we can anticipate all the meat we have been waiting for.

We do know from the Feb 26th tweet the Southern Ontario facility is being built out, and all names involved will be known soon.

GRO3 has long since been certified organic from USDA certified organic from USDA and struck a deal with Roto Gro

We also know GRO3 is going through Health Canada certification and is truly positioned to take massive advantage of industry requirements. 3rd party evidence is piling up of the industy demanding more from the MJ producers, as shown in ASQ’s (American Society for Quality) largest conference of the year:



Last, we still have developments in California as initially reported a little over a year ago

GROzone has entered into discussions with a California corporation to integrate the EcoPrO3 technology into a 10-acre medical marijuana property which is in development. We will provide updates on this initiative as they develop. 

This Cali connection and more are still in the works. No, there are no ‘lies or broken promises’ as some might state, go back and see my comments on timing and developments.

Building a company of real value takes TIME, something many folks are not used to in the pinks.

All in all, GRO3 is going to produce news that is going to make big waves in the industry and really earn that spot at the top of the cannabis stocks list!

NSI:

From the Feb 20th, 2018 update We already saw a ton of meat! Huge account increases and more in the works.

My favorite line in the PR

NSI is also actively negotiating distribution deals with several major Fortune 500 CPG companies, with two of these deals to be announced shortly once they are secured.  

What I am also hoping (This is just me talking) is NSI begins the distribute infused drinks. At my local dispensary, I have started to see such beverages:



In the meantime, the sub is firing on all cylinders and is set to 'regain and exceed its previous $18Million per year market share’

It will get there via many new distribution agreements:

• HBCI Bread, exclusive Canadian distribution of 35-day extended shelf life bread products using a
clean-label proprietary mix, versus the industry standard 9 to 12 days.  There will be ten bread
products, including white, wheat, hot dog buns, hamburger buns, bagels, multigrain, Italian, etc.
breads. This is the first and only formulation of it’s kind in Canada.  
• Planters Nuts and snacks.
• Metzger meats in Ontario
• Aggressive expansion into Bars/Clubs/Restaurants with sales of 28 Black (New & old flavours &
support material from Spa Springs.)
• Various products from Conagra Brands

All and all, NSI was nothing short of an incredible acquisition, an terrific turn-around story from a family tragedy and will absolutely massively increase customer value now and in the future.

Interloc Kings:

Roger stated back on the first ‘My Two Cents’ interview IK wasn’t the most exciting company on the block, but it was vital as a little money engine that could. It generates enough cash to be self-sustaining and foster the development of other subs until they can stand on their own two feet Per the June 21st, 2017 PR, we can look forward to the spin-off and free dividend shares:

- interloc-Kings Inc. will spin-off into a new public entity
- Snakes & Lattes Inc. and GROzone will remain as subsidiaries of Amfil Technologies Inc. (AMFE)
- Shareholders of Amfil Technologies Inc. will retain all holdings in Amfil and in addition will be awarded
shares in the newly formed entity.
- Management is in the process of reviewing an acquisition for the new entity which would significantly
increase shareholder value.
- Further details relating to plans for the new entity will be released as they develop.

Again! Not promises, just not on YOUR timeline. Folks who invest in stock on their timeline have already greatly put themselves at risk. I cannot emphasize this enough. Untold amount of money is lost in all markets when people believe they can ‘make a quick buck’ get their money out and still have profits. That is turning INVESTING into GAMBLING.

IK is actually doing its own franchising model per the most recent Q:

We plan to run franchises in Markham where blocks of 500 customers could be allotted to independent owners or kept as a larger franchise and expanded to other cities across Ontario and Canada. We are also looking at the City of Brampton which is similar in scale and can be easily set up using the model we have in Markham. We are also targeting the City of Toronto which has over 1 million households.

All in all, AMFE is pretty much the most undervalued, highest performing company I have ever encountered. The due diligence is so easy as are the results. AMFE is going to have an extremely great future, and the current pps will simply not stay at these levels very long.

There is plenty more Ive left out, it is nigh impossible to cover everything that is AMFE, I encourage everyone to continue digging, because there is a LOT of GOLD to unearth here!

There will come a day, some years from now where one will be able to hear investors talking to each other:

‘Wow, I love AMFE so much, it is such a great company, with so much going on. It has been one of my best investments of all time!’
‘Yeah, I love AMFE too, what did you get in at?’
‘$2.21’
‘Oh my god, you are so lucky to have gotten in so LOW!!!’

AMFE: FOCUS FORWARD: IGNORE THE REST

$$$$ AMFE $$$$