Muscle Maker's Strategic Partnership With AGGIA Could Be Pivotal As The Company Continues To Grow Its Franchise And Global Footprint

Muscle Maker Inc. GRIL is aggressively embarking on an expansion drive, aiming to provide more consumers with healthier versions of mainstream-favorite dishes that taste great, making it easy, affordable and enjoyable to eat healthily. 

A recent announcement of a Company diversification initiative with AGGIA LLC FZ, an international shipping, sourcing, trading and farming of physical commodities  business, could chart a new growth path for the company and shape the industry’s future.

Shaping The Industry’s Future?

Instead of taking the route of a Special Purpose Acquisition Company (SPAC), a trend which appears to be dying, Muscle Maker is exploring a different sort of diversification initiative by forming a new wholly owned subsidiary, Sadot LLC, and hiring AGGIA LLC FZ to perform the day-to-day operations of the new subsidiary.  AGGIA can achieve a change of control by generating net income through Sadot, LLC.

“We have engaged AGGIA on a pay-for-performance basis. AGGIA only earns shares of Muscle Maker common stock if net income is generated by Sadot LLC. The shares of common stock are calculated by dividing the net income generated for an applicable quarter by a premium share price of $1.5625 per share,” Roper disclosed in this interview below with Benzinga.

Over time, AGGIA can gain control of Muscle Maker’s Board of Directors once $9.9 million in net income is generated by Sadot LLC. AGGIA may earn up to 14,424,275 shares of common stock, which would require Sadot LLC to generate $22,537,929 in net income. Upon AGGIA earning the maximum amount of shares of common stock, if net income is generated, it shall be accrued as debt.

Any incremental costs incurred by Muscle Maker will be paid monthly by Sadot LLC and all cash on hand in Muscle Maker today remains focused on the Pokémoto franchise strategy.

“We continue to execute against growing the franchise business model through Pokemoto, so we’re over there doing that, as AGGIA comes in and helps diversify the company in this commodity side of the business. So pretty significant impact on the business overall,” Roper noted.

Aggia To Bring Significant Expertise In Food And Agriculture Supply Chains 

AGGIA is an international consulting firm composed of senior executives with significant backgrounds in the food and agri supply chain industries.

A statement explaining the initiative said AGGIA’s team possesses expertise in moving various grains and other food products around the world. Sadot LLC will primarily participate in sourcing, distributing, and producing agricultural products.

A typical transaction consists of shipping grains via cargo ship from one country to another containing 25,000 to 70,000 metric tons of grains with values ranging between $5 million and $40 million per shipment. These transactions would be considered “truckers of the seas'' and an integral part of feeding the world.

Focus On Growth And Shareholder Value

Providing “Great Food with Your Health in Mind,” ™ Muscle Maker Grill’s menu features grass-fed steak and all-natural chicken. The menu also has options that satisfy an array of dietary preferences, from vegetarians to the low-carb consumer and guests following a gluten-free diet. Since 1995 when it was founded, the company reports its diverse menu was created for everyone – fitness enthusiasts, those starting their journey to a healthier lifestyle, and people trying to eat better while on the go.

This positioning towards accessible and healthy food has made the company a favorite of many, especially in an industry with players such as Yum! Brands Inc. YUM, McDonald’s Corp. MCD, Wendys Co. WEN and Jack in the Box Inc. JACK.

Apart from its Muscle Maker Grill restaurants, the company also runs Pokemoto Hawaiian Poke and SuperFit Foods meal prep to provide more options for its increasing customer base.

The management of Muscle Maker, led by its CEO Michael Roper, says it is constantly looking into diversifying and growing the company.

“In the last six months, we’ve been going pretty well against developing the franchise growth strategy with our pokey (Pokemoto Hawaiian Poke) model brand. We have actually signed over 50 franchise agreements here recently and started opening up some of those locations,” Roper told Benzinga in an interview.

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