Business
Muscle Maker, Inc. and AGGIA LLC FZ Amend Services Agreement
New Agreement to Reduce Expenses Related to Stock Issuance and Enhance Profit PotentialFORT WORTH, TX / ACCESSWIRE / July 18, 2023 / Muscle Maker, Inc. (MMI),
About this update from Sadot Group Inc.
[{"type":"text","content":"New Agreement to Reduce Expenses Related to Stock Issuance and Enhance Profit PotentialFORT WORTH, TX / ACCESSWIRE / July 18, 2023 / Muscle Maker, Inc. (MMI), the \"Company\" (Nasdaq:GRIL), today announced it has amended its current Services Agreement with AGGIA LLC FZ. The new addendum, among other features, modifies the formula by which MMI will issue shares of common stock earned by AGGIA for net income generated through MMI's Sadot division from 80% of net income to 40% of net income. The overall intended effect will be to reduce, by 50%, the quarterly non-cash expenses related to stock issuances to AGGIA, streamline the reporting processes and is expected to have a favorable impact the Company's financial performance.Previous AgreementUnder the service agreement as previously entered, AGGIA earned shares based on the net income generated by Sadot. Specifically, 80% of Sadot's net income is used to calculate the shares earned by AGGIA. AGGIA has the potential to earn up to a total of 14,424,275 shares of MMI common stock, which the new addendum has not impacted. AGGIA has earned 5,568,823 shares through Q1 and has also nominated eight new board members by generating over $9.9 million in net income to date.New AddendumUnder the new addendum, AGGIA may continue to earn shares using net income generated in Sadot. However, instead of allocating 80% of Sadot's net income for stock issuance, we have modified this allocation to 40%. This change will reduce the quarterly non-cash stock based expense by 50% with the intended result of improving the bottom line results for the company.Commenting on the new addendum, Muscle Maker CEO Michael Roper, stated, \"This addendum reflects AGGIA's continued support and confidence in their performance going forward. We believe this addendum will significantly clarify our financial reporting and improve our quarterly reported net income. While the fundamental terms of the agreement have not changed, i.e., AGGIA has nominated eight new board members, they still have the opportunity to earn up to 14,424,275 shares of stock, etc. The new addendum however is expected to cut our quarterly stock-based expense in half and more than triple the amount of net income from Sadot that will accrue to MMI's bottom line. This is a significant improvement in our reporting processes and efforts to enhance sharehol...