Fresh Healthy Vending International, Inc. Signs Financing Agreement to Borrow up to $1.5 Million
For Roll Out of Company-Owned Micro Markets
Up to 250 micro markets expected to begin roll out this quarter across Southern California.
SAN DIEGO - October 07, 2014 - (BUSINESS WIRE) - Fresh Healthy Vending International, Inc. (OTC Markets: VEND), North America's leading healthy vending franchisor, reports it has entered into an agreement to borrow up to $1.5 million to install up to 250 Company-owned micro markets. Each of our micro markets features an open display of healthy snack products, as well as a refrigerated and freezer case containing beverages and a variety of fresh and healthy offerings. The Company is committed to issue up to $1.5 million of convertible secured debt evidenced by promissory notes and secured by the Company-owned micro markets.
Additional principal terms of the Financing Agreement include:
- Our being able to borrow up to $1.5 million in tranches of $150,000 each;
- Our drawing down an initial financing tranche at the closing of the transaction;
- Our commitment to utilize those funds to build and install 25 micro markets;
- The lender's undertaking to fund each subsequent tranche after each instance when we have installed at least an additional 20 micro markets into service;
- A due date of about 24 months from the funding of each tranche although at our discretion we are able to extend the due date of each funding tranche for an additional 12 months.
- Our allowing the lender at any time to convert outstanding amounts that we owe into shares of common stock at a conversion price that is 85% of the average closing prices per share for the 15 trading days prior to the notice of conversion, but in no event at a conversion price lower than $1.28 per share.
- Our ability to convert on maturity up to one-half of the outstanding amounts that we owe into shares of common stock at the same conversion terms allowed to the lender.
"We are extremely satisfied with the terms of our Financing Agreement, and look forward to commencing the roll out of our Company-owned micro markets this quarter," stated newly appointed CEO Art Budman. "The micro markets are our newest product offering and the results of our pilot program have been very encouraging. We believe that these units will make a significant contribution to our growth in the coming fiscal year."
"We are also pleased," said Mr. Budman, "that holders of the Company's notes aggregating $501,000 have extended the maturity date of those obligations from February 15, 2015 to March 15, 2016."
For more information on Fresh Healthy Vending, the franchise program, or to receive a free healthy vending machine in your school or business, visit www.freshvending.com or call toll free 888-902-7558.
About Fresh Healthy Vending
Fresh Healthy Vending, based in San Diego, California, is North America's leading healthy vending franchisor. Fresh Healthy Vending pioneered the concept of vending machines stocked with tried-and-tested fresh, healthy snack options and capitalizes on a growing market of health conscious consumers. The Company has more than 180 active franchisees throughout the United States, Canada, Puerto Rico and the Bahamas, and actively looks to partner with like-minded entrepreneurs who share its vision.
The Company offers three different vending options: (i) the Healthy Vending Combo snack and drink machine, (ii) the Healthy Vending Touch - a 46" 3D interactive touch screen vending machine, and (iii) the Fresh Micro Market.
The Company has booked over 2,300 machines for placement in schools, universities, hospitals, community centers, military bases, airports, fitness facilities, YMCAs, libraries and many other locations.
Fresh Healthy Vending provides a comprehensive integrated business model that:
- Has an integrative focus on securing qualified locations for vending machine placement on behalf of franchisees;
- Has an in-house products department which creates specialized menus specific to each location;
- Has a corporate owned machine division to provide an independent revenue stream separate from franchise sales;
- Provides franchisees with best practices obtained and enhanced by experience of directly operating machines and managing routes;
- Delivers a one of a kind franchise-coaching program to assist franchisees with developing their healthy vending business using the company’s Steps to Success Program.
Fresh Healthy Vending's stock is traded on the OTC Markets, Symbol: VEND.
For more information on Fresh Healthy Vending, the Franchise Program, or to receive a free healthy vending machine in your school or business, visit www.freshvending.com or call toll free 888-902-7558.
Cautionary note on forward-looking statements
Except for historical information contained in this release, statements in this release may constitute forward-looking statements regarding assumptions, projections, expectations, targets, intentions or beliefs about future events that are based on management's belief, as well as assumptions made by, and information currently available to, management. While the Company believes that expectations are based upon reasonable assumptions, there can be no assurances that goals, results and strategy will be realized. Numerous factors, including risks and uncertainties, and terms and availability of financing, may affect actual results and may cause results to differ materially from those expressed in forward-looking statements made by the Company or on its behalf. In addition to statements, which explicitly describe risks and uncertainties, readers are urged to consider statements labeled with such terms as "believes," "belief," "expects," "intends," "feels," "anticipates," "proposes," "proposed," or "plans" to be uncertain and forward-looking. More detailed information on these and additional factors that could affect Fresh Healthy Vending International, Inc.'s and its subsidiaries actual results are described in the Company's filings with the Securities and Exchange Commission, including its most recent annual report on Form 10-K for the fiscal year ended June 30, 2014 and its Forms 10-Q filed for the quarterly periods ended March 31, 2014, December 31, 2013 and September 30, 2013, as well as our several current reports on Form 8-K. All forward-looking statements in this news release speak only as of the date of this news release and are based on the Company's current beliefs and expectations. The Company undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.
Fresh Healthy Vending International, Inc.