Generation Next Announces July Results, Management Reorganization, and Cost Reduction Plan / Path to Profit
August 08 2019 - 08:03AM
InvestorsHub NewsWire
Generation Next Announces July Results, Management Reorganization,
and Cost Reduction Plan / Path to Profit
SAN DIEGO, CA -- August 8, 2019 -- InvestorsHub
NewsWire -- Generation Next Franchise Brands (OTC.BB - VEND)
announced several moves which support the Company’s objectives to
increase cash flow, raise capital, and increase its Reis &
Irvy’s kiosk
production.
The details provided by the Company
include:
- Expanding the Board of Directors
through a search for two additional independent members with a goal
of forming a Board comprised of a majority of independent
Directors
- Effective September 1,
appointing current CFO, Ryan Polk, as interim-CEO and the Founder
and CEO, Nick Yates assuming the position of Vice President Sales
and Marketing
- Reducing compensation for
executive management
- Eliminating 40% of the current
payroll expense
- Streamlining marketing, research
and development budgets
- Forming a new partnership with
First Apex International further improving investor relations
capabilities
“Raising capital, adding strategic insights, and
increasing governance are critical objectives for us during the
next 90 days. This starts with the addition of two new Independent
Directors and selecting the right partner to help us engage the
capital markets,” said Yates. “We have blazed a new trail in
unattended food retail and have attracted strong interest from
franchise operators and high-profile national retail hosts. This
model is sound, and we have a huge backlog of revenues to both
recognize and help us attract the right kind of finance partner. We
are all very eager to move into this phase of the Company’s growth
and evolution.”
Yates will have the opportunity to now focus entirely
on developing new unattended retail platforms and leading both
sales and marketing of the existing Reis & Irvy’s and Print
Mates brands. The Company noted that Polk will retain his CFO
responsibilities and that the Company expects to announce the two
Board Nominees before the end of September. The expanded Board will
be responsible for naming a permanent CEO. The Company is currently
assembling a slate of promising
candidates.
The expense reductions are estimated to decrease
selling, general, and administrative expenses by $3 to $4 million
annually. The position eliminations were communicated to employees
this
week.
Some additional highlights for the month of July
include:
- Secured 41 new US locations for
Reis & Irvy’s
franchisees
- Booked 22 new Reis & Irvy’s
franchises in seven new franchise contracts worth $1.2 million in
deferred revenues (averaging $54,500 per
franchise)
- Installed 35 unattended retail
kiosks allowing revenue recognition of approximately $1.5
million
The Company received the
following press mentions during
July.
- Retail
Touchpoints:Exclusive Q&A: Not Your
Father’s Vending Machine
- San Diego Business
Journal:For Reis & Irvy’s,
Disruption is a Dish Best Served Cold(Syndications: NBC San
Diego, NBC Los
Angeles, San Diego
Informer)
- ABC Columbia:Robotic Vending Machines
Coming to Columbia are Ready to Serve
You
- Winsight Grocery
Business:How Franchises Get Digital
Shoppers Back in the Store
- ZDNet:7-Eleven's self-checkout: A
low-tech answer to Amazon
Go
- Investor Ideas:Generation Next (OTCQB:
VEND) Announces Fiscal Year End Revenue of
$17,100,000
- NBC San Diego:California Department of
Public Health Approves Robot Ice Cream
Vendors(Syndications:NBC
Chicago, NBC
Miami, NBC New
York, NBC
Philadelphia, NBC Washington
DC, NBC Bay Area
News, NBC
DFW, NBC
Connecticut, NBC Los
Angeles, NBC
Boston, NECN.com)
- Vending Times:California Department of
Public Health Approves Reis & Irvy's Soft Serve Vending
Machines
- Kiosk Marketplace:California grants variance
for self-serve frozen dessert kiosks, mandates cleaning and
sanitizing product
- San Diego
Metropolitan Magazine:Daily Business Report-July
24, 2019
- Downtown
Magazine: Can Froyo Robots Stop the
#icecreamchallenge?
- Grocerant Guru:Innovation & Disruption
are the Undercurrent Threatening U.S. Chain
Restaurants
For more information, visit
Generation NEXT
Website: www.gennextbrands.comor call Toll-Free (888)
902-7558.
About Generation NEXT Franchise
Brands, Inc.
Generation NEXT Franchise Brands, Inc., based in San
Diego, California, is a publicly traded company on the OTC Markets
trading under the symbol OTCBB: VEND. Generation NEXT Franchise
Brands, Inc. develops, distributes, and operates unattended retail
platforms through the subsidiaries of Reis and Irvy’s, Inc., Print
Mate Kiosks, Inc. and 19 Degrees, Inc. the managing partner of 19
Degrees Corporate Service
LLC.
About Reis & Irvy’s,
Inc.
Reis & Irvy’s, Inc. is a subsidiary franchise
concept of Generation NEXT Franchise Brands, Inc. (VEND). Launched
in early 2016, the revolutionary Reis & Irvy’s Vending Robot
serves seven different flavors of frozen yogurt, ice cream, sorbets
and gelatos, a choice of up to six custom toppings and to customers
within 60 seconds or less at the point of sale. The unique
franchise opportunity has since established itself as a high-demand
product and currently showcases a franchise network both
domestically as well as
internationally.
www.reisandirvys.com
About Print
Mates
Print Mates™ was formed by a team of entrepreneurs,
engineers, and photography professionals in San Diego that are on a
mission to reinvent the premium-quality photo printing experience
by making it fast, fun, and inexpensive to get your photos “out of
your phone and into your hand” with the Print Mates™ Kiosk - and
creating a golden opportunity for retailers in the
process.
Print Mates’™ easy-to-use, patented touchscreen
kiosks are promising to close the loop on the consumer photo
lifecycle, as well as drive much-needed foot traffic to traditional
brick-and-mortar businesses ranging from supermarkets, grocery and
drug stores to big box retailers, shopping malls, family fun
centers, hotels, airports and
more.
The company began a nationwide expansion in 2019 by
offering retailers, business owners and forward-thinking retailers
across the country an opportunity to own a piece of an emerging
multi-billion dollar
industry.
Print Mates™ Kiosks and ever-expanding product line
of photographic decor, gifts, prints and accessories are proudly
Made in the USA.
www.printmates.com
About First Apex
International
First Apex International is
a global investor relations firm focused on providing a
wide range of investor relations services to middle market and
emerging growth public and private companies utilizing industry
best practices.FAI works closely with
their clients, ensuring they are provided with a comprehensive
strategy and the right tools in the development of their investor
relations programs. With a team of dedicated professionals, FAI
designs and implements a customized plan to achieve client results
and meet specific needs and capital markets objectives in a
cost-effective
manner.
This information is not intended as an offer to sell,
or the solicitation of an offer to buy, a franchise. It is for
information purposes only. No Reis & Irvy’s franchises will be
sold to any resident of any state until the offering has been
exempted from the requirements of, or duly registered in and
declared effective by, such state and the required FDD (if any) has
been delivered to the prospective franchisee before the sale in
compliance with applicable law. Currently, the following states in
the United States regulate the offer and sale of franchises:
California, Hawaii, Illinois, Indiana, Maryland, Michigan,
Minnesota, New York, North Dakota, Oregon, Rhode Island, South
Dakota, Virginia, Washington, and Wisconsin. If you reside in one
of these states, or even if you reside elsewhere, you may have
certain rights under applicable franchise laws or
regulations.
Cautionary note on forward-looking
statements
This press release contains “forward-looking
statements” within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. Forward-looking statements include, among
others, statements concerning our future financial performance,
including statements regarding: our ability to generate revenue and
recognize deferred revenue; our ability to timely launch delivery
and installation of our frozen yogurt robots; and our ability to
grow our franchising and licensing divisions and launch our
corporate-owned and direct sales platforms. The Company bases these
forward-looking statements on its current expectations, estimates
and projections about future events and the industry in which it
operates using information currently available to it. Actual
results could differ materially from those discussed in, or implied
by, these forward-looking statements. Forward-looking statements
are identified by words such as “believe,” “anticipate,” “propose,”
“expect,” “intend,” “plan,” “will,” “may,” “estimates,” variations
of such words and other similar expressions. In addition, any
statements that refer to expectations, projections or other
characterizations of future events or circumstances are
forward-looking statements. Factors that could cause actual results
to differ from those implied by the forward-looking statements
contained in this press release are set forth in our filings with
the Securities and Exchange Commission (SEC), including our most
recent Annual Report on Form 10-K for the year ended June 30, 2018,
our Quarterly Reports, and our Current Reports on Form 8-K. Be
advised that developments subsequent to this press release are
likely to cause these statements to become outdated and the Company
is under no obligation (and expressly disclaims any such
obligation) to update or revise any forward-looking statements
whether as a result of new information, future events, or
otherwise.
Contact:
generationnext@5wpr.com