Generation Next Franchise Brands Inc. (fka VEND)

[Officiousintermeddle]

A couple of curious things about that Print Mates deal:

1. It's very difficult to tell exactly what the consideration was for the acquisition, other than that it did not include any cash. Here's what VEND said about the matter -

"...the Buyer agreed to assume approximately $300,000 of liabilities net of finished goods inventory"

That statement does not make sense because you don't net finished goods inventory against liabilities. I suppose that it MIGHT mean that there were a total amount of liabilities that were assumed in the transaction that was equal to $300,000 plus the value of finished goods inventory. That might be what they mean, but then who put the value on the finished goods inventory and was it reasonable?

2. This seems as though it was likely a related party transaction, so I would expect that to be disclosed as well. The guy who controlled Print Mates was Frank Yates. Nick Yates' father is named Frank Yates (and Frank was involved in that phone card scam that Nick ran in Australia).

In a related party transaction, the Board would have been required to appoint a committee comprised of independent directors to consider whether to approve the transaction. Let's see what comes out in the 10-Q.