Amfil Technologies Inc (FUNN)

[jrf30]

Some GOOD news.

I don't post often, but sometimes something is worth posting about IMHO. Yesterday is one of those times.

As most know here, I am looking at being involved in more than just the Tempe location, and shall be working on other locations throughout the west over the next year or three. Well, another location I'll be involved with is close to signing its final paperwork to become official. (Although I am NOT foolish enough to give a specific date, as some hold dates too literally.)

Anyway, the (I can't divulge yet) location is close to being final. With me AND with a few other people involved. Here's what happened.

It takes a lot of money to open a Snakes. I shall use percents instead of dollars needed due to my NDA and not knowing what I can say or not. I decided after Tempe that instead of me putting in 100% of the money needed for a venue, I would follow the lead of someone who is working on a location in the east and invite others to join me in funding each location. Two advantages. Follow me on this.

First, if I put in 100% of the money needed into 5 locations, that is "500%" invested for 5 locations opened. Make sense? However, if I put in an average of 80% of the money into each one, and let others in for the other 20% of the deal (hypothetically), then I could do 6 locations and only have "480%" of the cost of one invested. It allows me more locations for my same amount money invested. That is a big advantage because it means we can get more locations done if I can find others to fund the other portion. And that just got easier yesterday. (I"m getting there!!)

Second advantage. There are lots of people who wish to be a Joint Venture Partner with Snakes but when they find out how much it costs they just don't have the money. It is too much for many. Setting up an LLC allows them to buy into a specific location without needing all the money themselves. If they buy 10% of the venue, instead of 100% of the cost for their own location, that is a lot easier for them to do. So it allows OTHERS to get involved TOO when they otherwise would be shut out. BIG advantage, as it opens the door to many new investors and maybe numerous new locations that otherwise would not happen.

Now, what happened yesterday?

Yesterday, I had the JV Partner LLC FOR (not yet saying name of city) APPROVED FOR AN IRA ACCOUNT INVESTMENT. That is bigger than it sounds. Think about how many people have money in their IRA accounts available for investment. Seems we fund the IRA each year but our regular savings account gets drained. The IRA keeps growing though. Now IRAs can be invested into venues. The investment was approved at a custodian named IRA Resources. No, not at Etrade or Schwab or such. This is a self directed IRA firm. Still, they are allowing investments into the LLC I established as the JV Partner for (oops. Almost said it. Not yet.) Do you see it?

As an example - I am still looking for $60,000 more for (still not disclosed) location to fund the final portion out. If someone I spoke to wished to invest $20K from their IRA, they can now DO that. As I said, that means I do not need to put in that $20K, which allows me to fund more locations faster, AND it allows them to buy into a location for only $20K. I also think if OTHERS wished to do a JV with Snakes for THEIR city, having nothing to do with me, then having IRA money available to them opens up new avenues for potential investors into their location and will make it easier to come up with the total due to open a venue up. No matter how you slice it, having new money available to fund locations is a good thing. Since Snakes has said they still need JV partners to open new locales, this makes that easier. And allowing SMALLER investments from MULTIPLE people from their IRA accounts might get some local groups of investors excited and get us locations that prior to this new available source would not happen. If someone is short $100K from what is needed to do a location in their city, and their friends have $50K to invest, then they are still short $50K and can't do the deal. If they or their friends have $50K in IRAs though, that could be enough to put them over the top. that's the key. Added money means an easier way to get over the top of what is needed.

Maybe some won't see this as a big event. Say that people should not risk their IRA money in a venue. For some, they are right. I am not a financial adviser, and I wouldn't tell anyone what they should or should not invest in. I'm just saying it is now available. And for ME, someone actually DOING some venues, I know that MY friends that I have spoken to about taking a small part of (city) have told me that they had money tied up in their IRAs but didn't have other money they could use, so they passed on the JV potential small ownership. This might allow them to invest anyway, in their IRA. It will allow ME to put part of MY IRA into a location, again expanding MY potential investment. I think it is a positive. Allowing people to invest SMALLER amounts into a location that they would then own some of, instead of owning 100% of it, and that will expand our potential.

ANYTHING that gives us a better shot of opening more than the slow pace we are on right now is a positive. So "I" consider yesterday's approval a big thing. I know how it will affect me. And hopefully it will be one more step for others to be able to open venues. HOPEFULLY. (Now to go see if I can rustle up that other $60K I am looking for, and see if this REALLY works. HA)