TORONTO, ON, Dec. 28, 2020 (GLOBE NEWSWIRE) -- via NewMediaWire -- Amfil Technologies, Inc. (OTC: FUNN) is pleased to provide the following shareholder update.
Per the previous shareholder update, this assessment constitutes the stated report to be given for the first 30 days of the CEO transition plan. It has been an incredibly active month; reviewing initiatives, projects, financials, meetings with contractors, auditors, and all levels of staff. While this report will give a comprehensive overview of the current trajectory for Amfil, certainly some areas will still need more review and strategic thought. Shareholders can expect continued communication in future reports.
First 30 day Key Accomplishments
- 2021 Q1 filed with attorney opinion letter on compliance
- Listed as Pink Current with OTCMarkets
- Restructured a portion of debts with favorable terms and negotiated interest free forbearances on another portion
- Signed engagement letter with Wipfli LLP accounting firm for FY 2019 and FY 2020 audits
- Negotiating the terms of the first dispensary operation buildout
- Hired a project manager to facilitate the opening of Tucson as expeditiously as possible. The new manager will be on sight full time after the first of the year
- Site visit to Tempe to as part of continuous improvement within operations
- Fulfilled prizes to contest winners just in time for the holidays
- Increased authorized shares to be compliant with obligations
- Listed in house published games on Loblaws and Walmart websites
- Initial review of all Amfil projects and initiatives for strategic assessment
- Comprehensive review with all levels of staff for 360 feedback on company
Communication
Recognizing, establishing and maintaining shareholder confidence is an important facet for investor relations, I have responded as promptly as time allows to anyone that has reached out by email or by phone. While one can expect a certain allowance for confidence as a new CEO; maintaining it can only be accomplished through consistency over time. This initial 30-day assessment provides the first data point for follow through in communications going forward. The intention is to set the tone for shareholders' expectations as I continue to lead Amfil as its new CEO.
Audit/Uplist
Certainly, completion of audits and subsequent uplist is paramount to Amfil’s continued growth and future success. To that end, I have signed an engagement letter with Wipfli LLP accounting firm to perform the FY 2019 and FY 2020 audits. Wipfli has 2400 associates in 48 offices spanning across North America and around the world. They are a top 20 auditing firm in the US. (https://www.wipfli.com/) Realistic discussions have occurred regarding timing of completion. The firm has requested supporting financial and other documents. A conference call is scheduled for the first week of January for the firm to assess the scope and expected timeframe of the project. As soon as a reliable projected completion date can be provided, it will be made publicly known. When the audit is complete we will proceed with the process for uplisting to the OTCQB. We are excited to have reached an agreement with such a robust accounting firm as we move Amfil to the next and much more appropriate tier in the OTC Marketplace.
Evaluations of all subsidiaries and initiatives
Snakes & Lattes
‘Tempe’ - The venue is operating at 50% of capacity based on COVID restrictions. Revenue has been higher than 50% of pre-covid numbers. To improve the opportunity, we have been granted a permit to expand our outside seating to hold an additional 30 customers, and we have successfully secured a grant to build the outdoor space. Measures have been taken to scale back labor costs in proportion to what is required to meet the current demand. ‘Tempe’ is the first Snakes & Lattes in the USA and has proven to be a good model for continued expansion. It has also shown us places where improvement is required in bookkeeping and accounting practices to stay consistent with all other venues. Those improvements are being implemented. Tempe also received a PPP loan and used the proceeds according to guidelines required for forgiveness. A forgiveness request has been submitted and is expected to be approved in the near future.
‘Tucson’ - A target date of March 15, 2021 has been set for opening. This is based on current projection for finishing construction, training staff, and finalizing permitting. If new information provides a necessary adjustment to the target, it will be reported in real time accordingly. A full time project manager will be on site from the first week of January until it is complete. A grand opening date will be announced in due course.
‘Guelph’ - Construction is proceeding. No opening date will be announced at this time, but shareholders can expect significant progress before the 3 month assessment report in March.
‘Chicago’, ‘Midtown’, ‘Annex’, and ‘College’ - all are temporarily closed except for takeout as a result of COVID 19 restrictions. Management in each location is engaging with customers through online trivia and other means to retain customer attention in preparation for reopening. Amfil purchased the assets of Gaming Cafe, LLC in Chicago and continues to operate under and with full ownership of that entity. In due course, we will make any adjustments when necessary on the corporate structure for that entity. A grand opening announcement will be given for ‘Chicago’ as soon as practically possible after reopening and operating at 100% capacity.
Morning - Amfil purchased assets of morning in 2018 with the intent of vertical integration in the board game space to create synergy with the Snakes & Lattes boardgame cafes. While there has been some success within international markets for our initial game board offerings, Morning has not proven to be the desired profit generator to date. There may be a viable future for Morning, but priority attention should be placed on Snakes & Lattes cafes that have proven to be able to generate significant revenues. Morning and other vertical integration efforts will be revisited after the cafes are stabilized in terms of revenue.
Loblaws - Our in house titles of ‘Kill the Unicorns’ and ‘Red Panda’ are listed on Loblaws’ website. The agreement to list 300+ new titles with Loblaws will be revisited during 2021.
Wal-Mart - Our in house titles are listed for sale on their website. Any additional negotiations for negotiating and fulfilling a purchase order will be revisited in 2021 after the board game cafes stabilize post COVID restrictions.
Gro3
The Gro3 product is the result of a joint venture between Advanced Ozone Integration, Inc and Amfil to manufacture and distribute air cleaning and water purification technology for indoor and outdoor grow operations in the Cannabis sector. To date, three units have been purchased and installed. While these units have proven the efficacy of the product and have greatly satisfied customer expectations, recent discussions have been had between the companies to determine the best way to proceed. At this time, I do not have enough information to predict the outcome of the initiative. Additional reports on this venture will be reported in 2021 as time for continued assessment and strategic thought must be given.
Dispensaries
An agreement was struck in August 2020 with highly accomplished cannabis dispensary entrepreneur David Berkovitz and Tokin Dispensaries Inc. to open Kiosks/Dispensaries in the Greater Toronto Area. The first location has already been secured. David and I are negotiating the terms of the first buildout which will likely become the central hub of our dispensary operation. Long term we have a goal to open many more; including kiosks adjacent to current Snakes & Lattes locations. We also plan to open them adjacent to Ontario convenience store locations with another company with whom we have a working relationship. The business model is very promising in that each location will require relatively small square footage and low labor costs with a high expected margin on the products sold. David Berkovitz, Tokin and Amfil are incentivized to move this project forward and excited about the prospects of what is to come. Progress on this initiative will be reported within the planned March 3 month assessment.
Interloc Kings
Interloc Kings continues to operate in the hardscaping and snowplow business. It continues to generate consistent moderate revenue. It is self sustaining, and requires little effort from the corporate side. Initiatives for opportunities and growth will not be prioritized until after the planned spin-off is complete.
USA expansion team
From January 18, 2020 to November 25, 2020
My previous role with Amfil was Head of USA Expansion from January 18, 2020 until I was named CEO. In the month and a half before the world locked down due to the pandemic, I had traveled for site inspections and made progress with LOI’s being negotiated across Denver, Los Angeles, New Orleans, and had many other potential venues in the works. The unknown variables spawned by COVID in early March made it far more difficult for landlords to entertain negotiations and for joint venture partners to invest in our entertainment concept. Expansion was certainly not scrapped; but travel became difficult, and the progress was unavoidably slow. Although my agreement called for compensation only in terms of a successful expansion, my efforts were shifted to helping Amfil uncompensated in any way I could. This included but was not limited to:
- Securing PPP funds for Tempe
- Helping Morning with relief assistance from the French government
- Successfully seeking rent abatements in Tucson and Tempe
- Negotiating debt relief with various creditors.
USA Expansion from now and moving forward
With COVID uncertainties beginning to settle, I expect opportunities in 2021 to pick up space and get venues open that we positively know the public is craving. But we should not rush or overextend ourselves. Expansion must happen, but we will first focus priorities on maintaining a balance to get all existing and planned locations open and profitable.
Franchising
Future franchising has the potential to be an incredible and unprecedented growth opportunity. However, before we can consider franchising, the audit and uplist must be completed. Even post audit and uplist while franchising might be a chosen route, we will assess franchising prospects at that time. The assessment will compare that path to the alternative moving forward with continued 100% corporate ownership of all locations. The option most beneficial for Amfil and its shareholders will be the path taken.
Spin-off
Amfil plans to spin off the Cannabis and Hardscaping sectors with Board Game Cafes and board game manufacturing and distribution sectors to stay together and benefit from vertical integration. Shareholders will receive proportional shares of the new company and benefit from the value expected from the spin-off. As completion of a spin-off is critical for institutional investment and the growth of Snakes and Lattes operations, it is absolutely on the road map. That said, there is no current timeframe for the spin-off. Many discussions and much work needs to occur first to accomplish this mission. The progress towards the goal will be reported in future assessments, but a target date will not be given until it has moved from the horizon to the forefront. Rest assured we are marching towards the horizon.
Revenue and Debt
Amfil was generating a 10 figure annual revenue prior to COVID restrictions. While we expect to meet and exceed those numbers as the restrictions are lifted, it is difficult to realistically evaluate and make a plan going forward until all current and planned venues are open and running at 100% capacity. In the meantime, I have taken steps to negotiate debt to work for the company in a healthy manner as we transition towards an exciting fiscal 2022 with even more enthusiasm for fiscal year 2023 and beyond.
Employee / Partner feedback
I believe in the collective knowledge of our workforce. The folks running the day to day operations possess much insight and wisdom of what is happening in the trenches, and can often be the greatest source of information in the spirit of continuous improvement. I have reached out to as many staff members as I can, and plan to make it part of my regular due diligence to maintain an open line of communications for the overall betterment of the company.
What is truly heartening, is that I have been overwhelmed with the positive reaction of managers, employees and joint venture partners falling under the Amfil umbrella. Their passion for our brands are unmatched, and I am excited for a promising future with our team.
Items not considered for further development
While none of these listed entities should be new news for shareholders, the goal of this report was to be comprehensive and give a complete view of all companies' current and previous projects.
NSI - The agreement was made approximately 3 years ago between Natural Stuff and Amfil is null. It will not be a focus for 2021 and there are no plans to revisit this agreement. It is critical Amfil pursues other endeavours more likely to generate revenue and return a profit.
Ku Kum - While we certainly wish Chef Joseph Shawana much success in all his culinary endeavors, the partnership established in 2017 between Ku Kum and Amfil is null at this time with no intent to revisit. Amfil needs to focus all critical resources and effort into the most profitable channels to maximize our future growth and success.
Guyana Mining licenses - There has been no pursuit for years and no current or future intent to pursue any further mining. Company time and resources are better spent on our board game cafe, cannabis, and hardscaping sectors.
Final note
While the intention of this report is to give a comprehensive overview of all current projects, there is so much going on with Amfil I am sure there are unanswered questions. As previously mentioned in my first update, shareholder conference calls are needed. This will be a 2021 calendar year initiative, I will establish such a plan and report in the 3 month March assessment. I expect to fill in more details as we see where we are with COVID and all other initiatives. Between now and the next assessment, shareholders can expect to receive news on any pertinent items, via Twitter or newswires. Those communications have their own frequency and we will make no specific announcements prior to release. The purpose of the next March assessment is to provide a quarterly update cadence that can be relied upon for all company on-goings. Right now, execution is critical and the top priority.
I am incredibly encouraged by what I’ve seen thus far, and the prospects for the future of the company are very bright and real. It is clear we have a lot of work before us; but our company and brand is strong, energizing and capable. I am truly filled with excitement and optimism for the future of Amfil. In the meantime, I will continue to hold myself accountable to shareholders for the plan I have laid out. My best efforts will be toward improving all aspects of Amfil for the benefit of all stakeholders (Shareholders and Amfil employees) through consistency of execution and communication. As always, I will remain accessible as best possible via email and phone.
About Snakes & Lattes
For further updates from the Snakes & Lattes and its parent company, Amfil Technologies Inc please follow us on Twitter @AmfilTech
For more information regarding the company, and its related subsidiaries please visit the following websites:
Amfil Technologies Inc. www.amfiltech.com
Snakes & Lattes Inc. www.snakesandlattes.com
Morning (Snakes & Lattes Publishing SAS) https://www.morning.us
GRO3 Joint Venture http://gro3systems.com
Interloc-Kings Inc. http://www.interloc-kings.com
About Us:
Amfil Technologies Inc. is the parent company to three wholly owned subsidiaries.1). Snakes & Lagers Inc. holds the trade name and is the owner of Snakes & Lattes Inc. which currently operates 3 tabletop gaming bars and cafes located in Toronto, Ontario and 1 in Tempe, Arizona. The company is in the process of expanding throughout North America. Snakes & Lattes Inc. was the first board game bar and cafe in North America, is believed to be the largest in the world and has the largest circulating public library of board games in North America for customers to choose from. For more information on Snakes & Lattes Inc. feel free to visit the website at www.snakesandlattes.com.
2). The EcoPr03 GRO3 Antimicrobial System was jointly developed between Amfil Tech and A.C.T.S. Inc. which rebranded its technology under Advanced Ozone Integration as an extension of the existing ozone technology being utilized in the food and beverage industry and integrated by A.C.T.S. into companies such as Pepsi, Nestle, Sysco, Sun Pacific and many others. The system is a triple-function sanitization unit capable of naturally eliminating 99.9% of water and airborne pathogens and the typically problematic pests that wreak havoc for cultivators (like aphids, whiteflies and spider mites), as well as bacteria, fungus, microbes and mold on surfaces, all without chemicals. The unit can also constantly regulate a given facility's water supply, oxygenating the water and maintaining a consistent PPM infusion of ozone that prevents the formation of algae, bacteria or mold (allowing for comprehensive water recycling), simultaneously removing the need to use pesticides and/or dangerous, often carcinogenic products to treat production problems, as is common throughout the industry today. This environmentally-friendly solution also eliminates odors, while slightly reducing the air temperature, lowering energy consumption by the HEPA filtration and HVAC systems and could potentially allow for a facilities process to be labeled certified organic in the U.S.A. when the crop is no longer considered illegal on the federal level, otherwise "Clean Green" or "Certified Kind" in the meantime. The EcoPr03 GRO3 Antimicrobial System passed product review by a registered USDA certifying agent for use in California as well as Pennsylvania and surrounding states. The subsidiary has developed a strategic partnership with Roto Gro, the creator of proprietary rotary hydroponic technology. More information on this product line can be found at www.gro3systems.com
3). Interloc-Kings Inc. is a hardscape construction company servicing the Greater Toronto Area. This subsidiary is an authorized Unilock installer. Unilock is North America's premier manufacturer of concrete interlocking paving stones and segmental wall products. Interloc-Kings Inc. has an A+ Rating with the Better Business Bureau (BBB) and a 10/10 rating on homestars.com. Specializing in stone and wood installations between $5,000 and $150,000 per project, Interloc-Kings Inc. has become a top, high quality installation company of outdoor living areas in the GTA. More information on this subsidiary can be found at the website www.interloc-kings.com
Safe Harbor Statement
This news release contains statements that involve expectations, plans or intentions (such as those relating to future business or financial results, new features or services, or management strategies) and other factors discussed from time to time in the Company's OTC Market or Securities and Exchange Commission filings. These statements are forward-looking and are subject to risks and uncertainties, so actual results may vary materially. You can identify these forward-looking statements by words such as "may," "should,", "will", "expect," "anticipate," "believe," "estimate," "confident," "intend," "plan" and other similar expressions. Our actual results, such as the Company's ability to finance, complete and consolidate acquisition of IP, assets and operating companies, could differ materially from those anticipated in these forward-looking statements as a result of certain factors not within the control of the company such as a result of various factors, including future economic, competitive, regulatory, and market conditions. The company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The company disclaims any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
Contact:
Rogen Chhabra, CEO
Amfil Technologies Inc.
Telephone: (601) 326 0805
Email: rogen@snakesandlattes.com
Or
Ben Castanie
Snakes & Lattes Inc.
Telephone: (416) 500 2911
Email: ben@snakesandlattes.com