Boston, MA 03/07/2014 (wallstreetpr) – The need for additional working capital requirement in spite of good sales revenues seems to have unnerved investors of Fresh Healthy Vending International Inc (OTCBB:VEND). The stock lost almost 23% on March 6, 2014 to close at $4.76.
Sales growing at a fast pace:
Fresh Healthy Vending International Inc (OTCBB:VEND) reported that the vending franchisee business is expanding rapidly. It announced that it will be selling 47 vending machines to five new franchises. This is in addition to the 19 machines it sold to existing franchisees in February, 2014. The company will now be present in seven states and its products will be available Ohio, South Carolina, Texas, Michigan, Wisconsin, Pennsylvania and Kentucky. The sales of the 66 machines will translate into revenues of $660,000 for the company. It is also looking to roll out Fresh Micro-Market soon. Such mini markets will integrate seamlessly into an office space and will be a mini food store that works as an unstaffed self check-out store. Fresh and healthy food is gaining prominence as doctors have been warning about the effects of junk foods on our health. The company has done well by targeting the busy office goers with this concept.
Acquisitions to provide vital inputs:
Fresh Healthy Vending International Inc (OTCBB:VEND) is looking at its recent acquisition of Corporate Refreshment Services, LLC (CRS) to provide it with vital inputs in order to run the mini markets successfully. The company has announced that it has entered into an non-binding agreement for the acquisition of the integrated micro market platform. It seeks to acquire all existing micro market assets and operations of the company. The deal covers all micro market locations, software, systems, intellectual property, inventories as well as accounts receivable of CRS. This will allow Fresh Healthy to expand their own micro markets rapidly. However, the company is raising an additional $501,000 through the issuance of senior secured promissory notes to three investors.
This bit of news seems to have spooked off investors in Fresh Healthy Vending International Inc (OTCBB:VEND).
