My OPINIONS on the CEO news.
About 2½ years ago, I was very invested in Amfil Technologies. I started out as a regular investor, like most of the board here. Then they announced they wanted to expand in the USA. I thought it was a great concept, and I flew up to talk to them about their USA program. After my visit, I funded them to build and open Tempe, AZ. I was very excited about what they wanted to do. I even opted (And still have the option) to put together investors for five MORE locations in the western USA in the future. I didn’t have all the money myself, but would invest with others to build out more locations. I was active with this company! I put together some investors to build out Tucson, and started working on funds for Denver. Amfil also decided that they wanted me to talk to other people who were interested in building in other parts of the country as well, so they gave me a title on the USA Expansion team. I really thought this was going to the moon, and was glad to be part of it.
Then we started building out Tempe. It was slow. Slow IMO because the management in Toronto did not make speedy decisions to allow it to proceed as it could have. Toronto talked a good game but actions didn’t always follow those words. I’m not saying anything that everyone doesn’t already know. Heck, even two weeks ago we saw the words “We will have Q1 filed on time.” That didn’t happen though, did it? Yes, there are always “reasons”, but the bottom line was that Tempe took WAY longer than it should have to be ready to open. It DID open though, and it started doing well. So we started planning Tucson, with hopes for 2021 to add Denver and Ft Collins. The group of investors, including myself, put our money in and we started planning Tucson's build out.
AGAIN I think Toronto slowed things down by not being as responsive as they should have been. With Tucson’s opening delayed, and a little disillusionment, I backed away from Denver and other venues. I also walked away from the USA Expansion position in 2019. Rogen Chhabra took over that position in early 2020. He and I spoke on the phone MANY times over the first few months of his working at that position. I gave him leads, shared thoughts, gave wisdom learned by doing it twice, and we spoke of our joint frustration with Toronto at times. Talking to Rogen was a breath of fresh air. Rogen actually DID the things he said he would do when we talked, including moving Denver forward a few more notches even without me. Did he open new locations? No. Because shortly after getting his footing … Covid19 hit hard. The virus stopped final commitments in many cities and numerous potential investors are waiting for a vaccine and a brighter forecast before they invest in their location. Rogen even had an LOI already for a location in Denver, but let it expire. I say it is a smart move to wait though. (Even though some have asked “where are the new locations?”, the answer is that it is smarter to WAIT than to rush ahead right now. Rents are coming down as other restaurants close, and better locations are coming available. The shut downs are NOT over, as we all know, so waiting is a SMART move right now.) Rogen has accomplished numerous things, even though Amfil decided to wait on actual openings. I have MUCH respect for Rogen. I learned about his work ethic and style of management as he worked on the USA expansion team, and confided in him that, for me, getting investor teams put together in a city and then finding a location was great, but then when it was passed up the chain to Toronto to finish the deal, it seemed to fall through the cracks or stall.
To hear that Rogen is now taking over the helm at Amfil fills me with hope. Hope because I STILL believe in the concept. I don’t believe that people will avoid board games in the future. I no longer have a vested interest in Tempe, as I gave that up too over a year ago and YES it is now 100% corporate owned, but I talk to their manager once in a while and I think we shall do well when things get back to “normal”. That may BE a while, but I see a concept that still has potential. When I add to that statement a CEO who can react and DO things with that potential? My faith grows! As Rogen becomes the top decision maker, instead of just leading the USA Team that gets it all put together and then hands it off TO decision makers, I see locations actually HAPPENING this time!
Do I think we are out of the woods? Not at all! This pandemic is SCARY. I do NOT see new locations opening “soon”. MY opinion! I doubt many people are investing their money into things like restaurants in late 2020. But when this virus calms down after the vaccine? If other investors gain faith, as I am doing, I think after some hard times the next few months that this company will do well long term with our new CEO! As Tucson gets ready to open (I AM still invested in Tucson, along with the other investors.) I see good signs there. Moreso, I still have the option for the five other potential locations I can build out when we get past this virus, and I still know some investors who would hopefully invest with me if I do. That’s an IF, but this management change is a major step in the right direction and even saying that exercising my option is back to an “IF” instead of “in the rear view mirror” is a big step forward. This change gives me some hope for success after the virus. I’m happy we have a man of action at the helm now. I feel it will rebuild the confidence we need OVER TIME in order to get investors like myself (not JUST me) putting money into new venues in new cities, and also to raise the stock price long term.
Roger and Ben have done some GOOD things to get us where we are today. They do a lot more than just manage cafes by the way, and I think even after this they WILL CONTINUE to do good things with this company. But the top position and final decision maker is now someone who I think can take us to the next level. Plus a man who when he does use words will not whet shareholders appetites beforehand on deals or events that then do not happen. No “announcements to say there will be an announcement SOON.” Whew! So although I count Roger as a FRIEND, I think we traded UP a LOT in business acumen, in leadership ability, and with future potential of success. I think this is a GREAT step forward for FUNN, and I want people to know that for ME, it is a game changer.
I’ve been gone from this board and company for well over a year. Now I shall re-look at the company, based on this. I still own many FUNN shares, due to the Tempe and Tucson deals. I feel more hope for those shares now than I did yesterday. I feel our long term potential just increased by a LOT. Yes, I want to see how Covid plays out first. That's why no new locations are opening NOW. Even I am waiting, as an investor, to see how things play out FIRST. A prudent move as an INVESTOR. THEN I'll maybe invest in other locations.) I want to see if all our locations survive, or if we lose one or two of them during this trying time. I’m a realist. Maybe we shrink before we grow. But the act of appointing Rogen is a WONDERFUL gain for us long term IMO. I think we got a great man who can lead us through this troubling time, and once past it lead us to a future we should already be in. A company with 15 or 30 open locations and doing well. Then more after that. I thank Roger and Ben for what is basically seven locations right now. Now I think we move on to the next level.
Hope springs eternal. Again.
