GRIL - Muscle Maker’s Strategic Partnership With AGGIA Could Be Pivotal As The Company Continues To Grow Its Franchise And Global Footprint
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Muscle MakerInc. (NASDAQ: GRIL) is aggressively embarking on an expansiondrive, aiming to provide more consumers with healthier versions ofmainstream-favorite dishes that taste great, making it easy,affordable and enjoyable to eat healthily.
A recent announcement of a company diversification initiative with AGGIA LLC FZ, aninternational business involved in shipping, sourcing, trading andfarming of physical commodities, could chart a new growth path for thecompany and potentially shape the industry’sfuture.
Shaping The Industry’s Future?
Instead of taking theroute of a SpecialPurpose Acquisition Company (SPAC) , a trend that appears to be dying ,Muscle Maker is exploring a different sort of diversificationinitiative by forming a new wholly-owned subsidiary, Sadot LLC, andhiring AGGIA LLC FZ to perform the day-to-day operations of the newsubsidiary. AGGIA can achieve a change of control by generating netincome through Sadot, LLC.
“We have engaged AGGIA on a pay-for-performancebasis. AGGIA only earns shares of Muscle Maker common stock if netincome is generated by Sadot LLC. The shares of common stock arecalculated by dividing the net income generated for an applicablequarter by a premium share price of $1.5625 per share,” Roperdisclosed in an interview (below) with Benzinga.
Over time, AGGIA cangain control of Muscle Maker’s Board of Directors once $9.9 millionin net income is generated by Sadot LLC. AGGIA may earn up to14,424,275 shares of common stock, which would require Sadot LLC togenerate $22,537,929 in net income. Upon AGGIA earning the maximumamount of shares of common stock, if net income is generated, it shallbe accrued as debt.
Any incremental costs incurred by Muscle Maker will be paidmonthly by Sadot LLC and all cash on hand in Muscle Maker todayremains focused on the Pokémoto franchise strategy.
“We continue toexecute against growing the franchise business model throughPokémoto, so we’re over there doing that, as AGGIA comes in andhelps diversify the company in this commodity side of the business. Sopretty significant impact on the business overall,” Ropernoted.
Aggia Brings Significant Expertise In Food AndAgriculture Supply Chains
AGGIA is an international consulting firm led bysenior executives with significant backgrounds in the food andagricultural supply chain industries.
A statement explaining the initiative saidAGGIA’s team possesses expertise in moving various grains and otherfood products around the world. Sadot LLC will primarily participatein sourcing, distributing, and producing agricultural products.
A typical transactionconsists of shipping grains via cargo ship from one country to anothercontaining 25,000 to 70,000 metric tons of grains with values rangingbetween $5 million and $40 million per shipment. These transactionswould be considered as providing services akin to being “truckers ofthe seas'' and an integral part of feeding theworld.
Focus On Growth And Shareholder Value
Providing “Great Foodwith Your Health in Mind,” ™ Muscle Maker Grill’s menu features grass-fed steak and all-natural chicken. The menu alsohas options that satisfy an array of dietary preferences, fromvegetarians to low-carb consumers and guests following a gluten-freediet. Since 1995 when it was founded, the company reports its diversemenu was created for everyone – fitness enthusiasts, those startingtheir journey to a healthier lifestyle, and people trying to eatbetter while on the go.
This positioning towards accessible and healthy food has madethe company a favorite of many, especially in an industry with playerssuch as Yum! Brands Inc. (NYSE: YUM), McDonald’s Corp. (NYSE: MCD), Wendys Co. (NASDAQ: WEN) and Jack in the BoxInc. (NASDAQ: JACK).
Apart from its Muscle Maker Grill restaurants, the company alsoruns Pokemoto HawaiianPoke and SuperFitFoods meal prep to provide more options for its increasingcustomer base.
Themanagement at Muscle Maker, led by its CEO Michael Roper, says it isconstantly looking into diversifying and growing the company.
“In the last sixmonths, we’ve been going pretty well against developing thefranchise growth strategy with our pokey (Pokemoto Hawaiian Poke)model brand. We have actually signed over 50 franchise agreements hererecently and started opening up some of those locations,” Roper toldBenzinga in an interview.
Muscle Maker, Inc. is the parentcompany of “healthier for you” brands delivering high-qualityhealthy food options to consumers through traditional andnon-traditional locations such as military bases, universities,delivery and direct to consumer ready-made meal prep options. Brandsinclude Muscle Maker Grill restaurants, Pokemoto Hawaiian Poke andSuperFit Foods meal prep. Our menus highlight healthier versions oftraditional and non-traditional dishes and feature grass fed steak,lean turkey, chicken breast, Ahi tuna, salmon, shrimp, tofu andplant-based options. For more information on Muscle Maker, Inc., visitwww.musclemakergrill.com, for more information on Pokemoto visitwww.pokemoto.com or for more information on SuperFit Foods visitwww.superfitfoods.com.
Forward-LookingStatements
This press release may include“forward-looking statements” pursuant to the “safe harbor”provisions of the U.S. Private Securities Litigation Reform Act of1995. To the extent that the information presented in this pressrelease discusses financial projections, information, or expectationsabout our business plans, results of operations, products or markets,or otherwise makes statements about future events, such statements areforward-looking. Such forward-looking statements can be identified bythe use of words such as “should”, “may,” “intends,”“anticipates,” “believes,” “estimates,” “projects,”“forecasts,” “expects,” “plans,” and “proposes.”Although we believe that the expectations reflected in theseforward-looking statements are based on reasonable assumptions, thereare a number of risks and uncertainties that could cause actualresults to differ materially from such forward-looking statements. Youare urged to carefully review and consider any cautionary statementsand other disclosures, including the statements made under the heading“Risk Factors” and elsewhere in documents that we file from timeto time with the SEC. Forward-looking statements speak only as of thedate of the document in which they are contained, and Muscle Maker,Inc., does not undertake any duty to update any forward-lookingstatements except as may be required by law.
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