Sept 5, 2018
Q. From Mr. Edd: Does anyone know who "JRF" is and is he on the S&L USA Expansion team?
A. Yes, JRF represents the initials of one of the S&L USA Expansion Team members, John Fox. He was hired on about four months ago now to help drive the expansion effort in the USA. As seen by our updates, the company feels he is doing a great job and we are grateful to have him on board.
Q. From Randy Marsh: Will Interloc-Kings Inc. still become a separate entity and if so when will they begin franchising IK?
A. Yes. As mentioned and as planned, IK will spin-off from Amfil post audit completion which will create the dividend back to Amfil shareholders of record by way of shares in the new entity. There are additional plans for this entity but unfortunately I cannot expand on that just yet.
Q. From Ruben F: The @Snakesandlattes acquisition was definitely a #HomeRun are there other acquisitions on the works with similar potential? If so in what area? Entertainment, medical, transportation etc.
A. Quite a few potential deals come across the desk on a quarterly basis. Most get rejected immediately. The opportunities that we have explored and ultimately acquired, are companies with high earning potential but for various reasons were not able to operate at at their full capacity. Once we complete thorough due diligence and meet with everyone involved, we negotiate terms, usually at a rate of pennies on the dollar. We then proceed to step in and make the required cuts, adjustments, expansions, improvements etc to help the business achieve its highest potential. We were fortunate enough to have the opportunities to undertake this process with the noted acquisitions to date. All of which had the potential to significantly increase shareholder/company value.
And yes we have a few deals we are currently reviewing for potential and viability. They could end up being future acquisitions if deemed to be beneficial to the company and the shareholders. Some have been touched on publicly in the past, some not.
We invited our twitter followers to ask questions, any questions about Amfil, any of the subsidiaries, management, employees, our history.. Anything... We received a number of questions. Our responses can be found on this page. We will be answering a few questions every week, so feel free and check back and/or pay attention to our twitter feed for updates @AmfilTech
ASKED & ANSWERED 1
July 9th 2018
Q. From Randy Marsh: When will snakes and lattes put these other board game cafes out of business?! THEY TOOK OUR CAFES!!
A. Board game cafe's come and go. We might soon be in competition in some US cities like we are in Canada, but we are confident that our positioning and our business model will continue making us successful. Competition is also healthy as we noticed in Toronto, there might be space for other board game cafes, which don’t have the exact same positioning that Snakes & Lattes has.
Q. From Ruben F: How many games do you envision that Morning will produce per year? Will all games published by @Snakesandlattes come from them, or are there other partnerships in the works?
A. It is difficult to accurately predict how many we will be publishing moving forward, but we currently have a few in the works including Kill the Unicorns, Red Panda, IKAN, and BUURN. We will continue to monitor the market and viability of various game titles. Morning will be finding, developing and publishing games as part of Snakes & Lattes Publishing SAS. We will use all possible synergies (logistics, relationship, contacts, in house game experts...) and make sure the team at Morning has access to all our resources. Games will be primarily designed for a broad audience, with an international public in mind, and playable in Cafe environments.
Q. From Bharp: Will Snakes and Lattes expand beyond the US and Canada?? I.E France, Germany, Australia ??
A. Europe is definitely an objective and having part of our team in France is a great start to help us making this a reality. We are also receiving a lot of opportunities from all over the world.
July 4, 2018
Q. From Christina Rubino: When will we see more Canada locations opening up?
A. Another corporate location is being planned as we speak for just outside of Toronto, ON. This is in addition to the franchised Hamilton, ON and Waterloo, ON locations mentioned previously. There is no set date yet for this one so it is still too early to talk about the details but all the prep work has been on-going for some time now.
Q. From Larry L Hegberg: Does Amfil have a stock purchase option for its employees?
A. The company does not at the moment but this has been discussed a number of times over the past few months and employees have also asked for it. It is something we would like to incorporate in the near future.
Q. From Joel Henderson: Will ‘Kill the Unicorns’ be sold at all big box stores when it goes to retail?
A. The company is going to push the product down every distribution and sales avenue it can once the manufacturing is complete. As you might already know, the company already sells product to many large big box stores so that is very much the plan, yes.
July 12, 2018
Q. From EastCoastPete: I've listened to reviews of HOPE (the board game) and all state shortcomings that prevent the game from making it onto their "want to play again" list, thus limiting sales. Are there plans to utilize in-house S&L talent to revise the game play and instructions for re-release?
A. HOPE is one of the first game that was published by Morning, before we met the team . Like any entertainment product (movies, books...) a game needs to find its audience and not everyone will like it. We are okay with that. The type of game and the style of play doesn’t necessary reflect what The “New” Morning wants to publish.
Q. From EastCoastPete: Are any of your decision making management left handed? Introverted? Folks with these attributes often have advantages in ability to "think outside the box" and in the ability to be highly effective managers, compared to the base population. Is Roger? Ben? Steve? Other?
A. What make our team strong is the diverse background and experience we all have. Despite being fairly young, we all have different perspective on things, which can be frustrating at times, but in the end, has led to success. We imagined and developed our own business and never had anyone to look up to. Never had as a model or a segment leader to follow footsteps. Because of that reason, we always had to “think outside the box” and created our own path. But with over 200 employees we most certainly have some lefties and introverts.
Q. From UM needs new AD: Is S and L in talks for future JV with: 1. any US game distributors, or 2. any US cinema owners?
A. No talks of Joint Venture yet but definitely some interest in partnering with game publishers, game designers for US Expansion.
In Canada, we are working on interesting partnerships with large commercial landlords, entertainment venues ... more to come.
JULY 23, 2018
Q. From squidhead @ILLEX_SQUID
The acquisition of morning was brilliant! with multiple games so close to being published, will the creators be receiving royalties?
A. The creators always receive royalties... it's about 8% of the Wholesale price.
Rough Example: if a game cost $24.99 retail, then the wholesale price is going to be around $11.50 give or take.
in this scenario, the author can expect about $1 per game sold.
Q. From MANvsSTOCKS @MANvsSTOCKS
Curious, I understand its very hard to get product into big box stores, how did Amfil/Snakes come to engage Walmart? Also, get them to pilot order games not yet ready for distribution? Thanks! LONG #AMFE
A. Building relationships with giant retailers is not easy and takes time.
Snakes & Lattes Inc. & Morning have a strong sales force that had been working with Walmart for months and months prior to the PO you are referring to. The company, although based in France, has always had an international scope and has working relationships with a lot of large retailers around the world.
The large retailers are all trying to expand their array of products to compete with the pure online players. This is helping the board game industry at large and the best games are given a lot of visibility.
Look at the shelves of Barnes & Noble, Target, and Wal-Mart in the US and you will find a variety of board games further to the classics like Monopoly and Clue.
Walmart is pushing its online division to compete with Amazon. The same thing is happening in Europe where most of the book-stores are diversifying at a rapid pace : FNAC in France, Indigo/Chapters in Canada, Hugendubel in Germany or WaterStones, WH Smith in the UK.
There are still highly lucrative, and thus far untapped opportunities to expand with major retailers globally. Our salesforce intends to aggressively pursue these opportunities.
Q. From bill belmar @wbelmar Will your menu change as you open new locations in different cities. for example would you add cheese steaks in philly? thanks
A. The menus will definitely vary with the locations. For example, the Tempe, AZ menu will contain a lot more TexMex and SouthWestern inspired food.
July 2nd, 2018:
Q. From squidhead: Is the company still moving forward with the spinoff and dividend? Is the paving stone manufacturer acquisition still part of the company’s plan?
A. The spin-off and dividend is definitely still going to move forward. Once the audit is complete, we will begin this process shortly thereafter. As for the paving stone manufacturer acquisition, I am assuming you got this from the write-up for Interloc-Kings Inc. It is still an idea we would like to pursue yes, but after the spinoff, this would more than likely not be the first acquisition made as there are some other ideas that we feel would bring more immediate value to the spun off subsidiary.
Q. From Michael J Frankland: Is there still going to be a shareholder appreciation night with drinks on the house? I think longs deserve a double now.
A. Yes there is. Potentially multiple. With the audit dragging out it set some plans back, this being one of them. But we still intend to have this and these type of events. Perhaps one at each location opened going forward to accommodate travel since the shareholder base is so spread out across North America and not everyone will be able to attend depending on geography. With some of the plans we have set in motion, we should coast to coast be able to accommodate in the future so everyone does not have to fly up to Toronto, ON.
Q. From Foxfur: Currently in America, there is no well-known brand for gaming cafes. Do you see Snakes & Lattes filling that niche.
Short and sweet. Absolutely. This is also not just an American void, there isn’t a well-known brand for board gaming cafés worldwide yet either. Other then Snakes & Lattes of course. Over time, we plan to become that brand as there are no chains currently and the majority of locations are one-offs.