YankeeLover wins the prize! Franklyn Yates is the brother of Nick Yates.
And, yes, the acquisition of Print Mates was a related-party transaction. It's a little curious that the company's 8-K filing failed to mention that fact. Not too kosher. Perhaps an amendment is in order?
Also curious is that the transaction was approved by "the Board" as opposed to a committee of disinterested directors. Not very kosher, either.
Also curious that about a month ago, Nick was describing Print Mates as a VEND company when making an investor presentation even though it was still owned by brother Franklyn at that time.
And it remains quite curious that the consideration is described as the assumption of $300,000 in liabilities "net of kiosk inventory value." So, the actual amount of assumed liabilities is substantially in excess of $300,000, eh? But we don't get to see how much that is, or how the kiosk inventory value was determined?
Forgive me my skepticism, but this strikes me as a "heads I win, tails you lose" sort of deal. If Print Mates had taken off like a rocket, do you think we would have seen brother Frank so kindly bestow the fruits of his efforts on VEND? On the other hand, if dear old Franklyn has run up a tab and finds himself a little short while his unsold print kiosk inventory sits in a warehouse, maybe VEND should be interested in an acquisition, no?
Brotherly love, it's a beautiful thing.
