Amfil Technologies Inc., (OTC: FUNN), is pleased to provide shareholders with an update and summary of the business developments that have occurred amidst the COVID-19 pandemic, as well as an overview of how the Company is allocating relief funds. This has been a long awaited update but just want to bring shareholders up to speed on where the company is currently at and how it has handled this extraordinary time.
CANADA
A State of Emergency was declared on March 17, 2020 and the injunction to close all restaurants was made public on March 24, 2020. The Company temporarily ceased all operations in Canada and all staff members were let go immediately in order for them to quickly obtain the Canada Emergency Response Benefit help (CERB). Upper management, however, has continued working behind the scenes on several business opportunities to ensure the Company continues to move forward in a positive direction. Announcements will be made shortly as the initiatives finalize.
During the month of July, Snakes & Lattes participated in a program called CafeTO that is meant to give restaurants the use of outdoor public space for patio use. The Snakes & Lattes ‘College’ location was granted the use of 1 lane of traffic on College St, in Toronto.
Restaurants in Toronto are expecting to be allowed to re-open shortly, although no official date has been made public as of yet, it is expected to be announced sometime this month.
USA
Arizona restaurants, including Snakes & Lattes ‘Tempe’, closed on March 17, 2020 and a Declaration of Emergency was proclaimed on March 19 by the Governor of Arizona. On May 20, 2020 Tempe re-opened for 34 days however on June 22, 2020 following the rise of virus cases in Arizona, the venue was forced to temporarily re-close.
Obtention of Relief Money For the group:
USA
Payroll Protection Program (PPP)
Through the PPP program the company received approximately $190,000 USD. The PPP loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities. We plan to use the majority of the PPP funds for these expenses. Otherwise the PPP loans have an interest rate of 1%, a maturity date of two years and loan payments are deferred for six months.
CANADA
Some of the relief money was utilized to pay off some of the higher interest loans that the Company was servicing. This will provide the Company with a significantly increased cash flow when the locations re-open. The Company used a small portion of the money to complete minor upgrades/renovations on some of the venues.
Resulting from the pandemic, AMFIL was able to take advantage of a loan discount. The Company had about $140,000 CAD left of debt from a private lender that we purchased for $65,000 CAD. We are still negotiating with some lenders (in Canada and US) large reductions against payment of entire debt.
Canada Emergency Business Account (CEBA) interest-free loans
Snakes & Lattes ‘Annex’ obtained $40,000 CAD
Snakes & Lattes ‘College’ obtained $40,000 CAD
Snakes & Lattes ‘Midtown’ obtained $40,000 CAD
Snakes & Lattes INC (head office, logistics) obtained $40,000 CAD
Interloc-Kings Inc. obtained $40,000 CAD
Repaying the balance of the loans on or before December 31, 2022 will result in loan forgiveness of 25 percent (up to $10,000 each).
Canada Emergency Commercial Rent Assistance (CECRA)
This program lasts 4 months (April, May, June, July), and pays 50% of rent during these months. During this time the landlord has also reduced rent by 25%. All of this considered, we are only responsible for 25% of rent which is saving the Company up to $250,000 CAD.
Snakes & Lattes took advantage of these programs in partnership with the venues’ landlords.
Canada Emergency Wage Subsidy (CEWS)
This program did not benefit Snakes & Lattes originally because it was forced to shut down and as a result there was no payroll to subsidize. However, the subsidy program has been extended to the end of the year. Snakes & Lattes intends to take advantage of this program to subsidize wages. The Company is estimating potential savings between $250,000 and $400,000 depending on how quickly the Company is permitted to re-open and when the former staff can be re-hired.
Interloc-Kings Inc. took full advantage of the CEWS program and was able to claim around $40,000 of the wage subsidy thus far. The future savings are estimated at or around $50,000.
FRANCE
Snakes & Lattes Publishing (aka Morning) was approved for the COVID-19 financial relief plan by its financial institution. Although not all monies have been received as of yet, we are absolutely confident that $130,000 Euros should be granted. The State is guaranteeing all loans at 90% and the loans have a 1% interest rate with repayments starting in two years time.
Snakes & Lattes Publishing (formerly Morning), was approved for the COVID-19 financial relief plan through its financial institution. The Company expects that it will receive approximately $130,000 Euros. The state is guaranteeing all loans at 90% and the loans carry a 1% interest rate with no repayments until 2 years time.
The plan to deploy the funds will be to finance another print run of Kill the Unicorns and Red Panda with many new partners and additional languages. The sales from these products were strong in Europe and another print run is already necessary. The Publishing division is progressing well and the Company intends to release a more detailed update on Snakes & Lattes Publishing soon.
The Last Few Months
COVID-19 has forced the Company to be leaner than usual; some of the new cost-saving measures will continue to the re-opening of locations to help minimize expenses moving forward.
Like the majority of businesses, revenues have been significantly impacted as a result of COVID-19 shutdowns. Canadian operations are down approximately $1.1 million USD thus far and US operations are down approximately $350,000 USD from last year.
Now for some better news: The virus disrupted a year and half of uninterrupted growth in the US. However, before the closure Snakes & Lattes ‘Tempe’ revenues accelerated in late 2019 – early 2020 as result of the implementation of initiatives such as the new food menu. The revamped menu includes more high-quality products and ingredients, which was well-received by our guests. The increased food sales are very promising; every quarter since opening, the Tempe location recorded a growth in revenue. Monthly averages are provided below:
OCT 2018 - JUNE 2019 monthly average $111,000
JULY 2019 - DEC 2019 monthly average $136,000
JAN 2020 - FEB 2020 monthly average $162,000
In preparation for re-opening, the following activities have been completed:
- Deep clean of all locations,
- Small renovations (bathrooms)
- Cosmetic touch-ups
- Review and implement best practices within restaurants
- Modified restaurant layout to support social distancing and ensure adherence to Public Health guidelines
- New menu
- Designed and implemented game cleaning protocol
- Implemented new software and loyalty program
- Began re-hiring staff
The Snakes & Lattes venues are quite large and maximum capacity is higher than available seating. Venues intend to take advantage of the extra space to support social distancing without a significant loss in seating capacity. Additionally, the Company designed and built vinyl separators where necessary to expand seating even further.
Snakes & Lattes ‘College’ location can still host more than 240 guests (patio included), while ‘Midtown’ will host over 200. ‘Annex’ may be required to restrict capacity from 180 to 140. ‘Tempe’ is a large location and will be spreading out indoor tables and taking advantage of the entire patio to prevent the loss of very much seating capacity. Ultimately, all locations will be able to remain at approximately 80% of their original capacity once re-opened until social distancing requirements end.
COVID-19 has been a difficult time for individuals and businesses alike. The Company has worked hard throughout the pandemic to ensure staff and customer safety while simultaneously minimizing the negative impact to the bottom line. We are excited to begin the re-opening process and intend to pick up where we left off with the implementation of our growth strategy.
Stay tuned for multiple updates in the coming weeks!
Please visit the new website which will be being updated and expanded on over the coming weeks at www.amfiltech.com
For further updates from 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. Snakes & Lattes Inc. currently has a 100+ member staff and recently acquired the exclusive distribution rights throughout Canada for some of the most popular board games in the world. The company also operates a lucrative fulfillment and distribution division and has recently entered into the board game publishing business through the acquisition of Morning which is expected to add significant revenues to the bottom line. 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 recently 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 recently 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 on the www.gro3systems.com website or on twitter @GRO3Systems.
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 $10,000 and $250,000 per project, Interloc-Kings Inc. has quickly 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:
Ben Castanie
Snakes & Lattes Inc.
Telephone: (416) 500 2911
Email: ben@snakesandlattes.com
Or
Roger Mortimer
Amfil Technologies Inc.
Telephone: (647) 880-5887
Email: rmortimer@amfiltech.com