Franchise Holdings International Inc (OTCMKTS:FNHI) is appearing on Street Register for the first time today, so our first order of business is to provide readers with a brief overview of the company’s core business.
FNHI’s wholly owned subsidiary, TruxMart was founded in 2011 to take advantage of the limited innovation provided by existing tonneau cover manufacturers. Tonneau covers have remained much the same in price and design since 2005 with one main company controlling a majority of the tonneau cover market. This dynamic market segment is in need of a new innovative manufacturer of high quality, functional, and aggressively priced tonneau covers. Truxmart has developed multiple products for all of the most prominent pick-up trucks available in North America. Truxmart sells its products through master warehouse distributors, dealers, and online retailers in North America and is expanding to Central and South American distribution of its products.
Recently, Franchise Holdings International Inc (OTCMKTS:FNHI) management received board approval for the creation and issuance of 1,000,000 new shares of a Series A preferred stock. The purpose of the new share class is to tighten FNHI’s capitalization, while maintaining CEO Steven Rossi’s voting control over FNHI, in addition to accomplishing other management objectives.
Presently, FNHI currently has issued only “common shares” with one vote per share, as a single share class. Rossi, as CEO, holds FNHI voting control by owning 112,000,000 of the 222,787,240 shares issued and outstanding. Rossi intends to retire up to 100,000,000 of his 112,000,000 FNHI common shares, while issuing preferred shares, reducing the FNHI issued and outstanding shares by up to 45 per cent. Each preferred share will vote the equivalent of 299 votes per 1 common share.
“This new share structure is just one step of many along our clear path and vision towards our future success,” Rossi commented, in explaining the board’s action today. “Revenues and profits are what compensates me for my work, not by selling my FNHI ownership.”
The process required an PRE 14C Information Statement filing, covering proposals by security holders whose actions do not require proxies and an SEC filing DEF14C, which is expected to start this month and requires 30-60 days to complete and file with the State of Nevada. (Source: MarketWired)
That announcement came shortly after an update from FNHI stating that the company expects to complete and issue its 2016 Audited Financial Statements at any time now, and that immediately after the audit is finalized, the FNHI Q1, 2017 Quarterly Review will be underway, with an anticipated expeditious time-frame.
Following the issue of the Audited Financial Statements and the Quarterly Review, FNHI will seek re-listing on the OTC’s QB exchange for early-stage and developing U.S. and international companies. With this milestone achieved, demonstrating the company’s growth-oriented progress, FNHI will move forward with its previously initiated dual listing on Toronto’s Canadian Securities Exchange (CSE).
Rossi stated that Truxmart’s business has continued its upward trend, and that it “presently has over US$235,000 in booked purchase orders, its highest level to date.” He also commented on a visit to the company’s Chinese factories in May saying that as a result “Manufacturing costs were reduced by approximately 18 percent, increasing profits substantially, while maintaining product quality.” (Source: Marketwired)
We’ll be looking forward to the update confirming that the proper audits and filings have been made to clean up its delinquent status with OTC Markets; the first step toward an eventual uplisting. We’ll stay up on any further developments with FNHI and pass them along to you! Stay locked on StreetRegister.com and be sure you’re signed up for our 100% free smallcap newsletter. It’s as easy as that! Simply submit your primary active email address in the box below. Subscribe now!
Disclosure: No one at Street Register has been compensated in any way for the publishing of this article, nor do we hold any position in FNHI stock, short or long.