VTL goes to Boston to build US vending franchises

Vending machine company VTL Group has conditionally bought an interest in a Boston vending company in return for licensing its franchise system and proprietary vending technology.

VTL said that when settled, the transaction would allow it to rapidly build growth in the United States vending market. VTL has agreed to pay $5.67 million for 18.9 per cent of All Seasons Services. The interest is in the form of cash-redeemable preferred stock, which carries warrants (options) for 18.9 per cent of All Seasons' common stock.

In return, VTL will sell All Seasons the shares in 24seven USA Franchising, which has a licence to use VTL's franchise system, training methods, brands and proprietary technology.

All Seasons will issue VTL an interest-bearing note for about $8.5 million, convertible at VTL's option any time in the next five years to 47.6 per cent of All Seasons' common stock.

Due diligence has been completed, and VTL says it expects the residual conditions of the transaction to be fulfilled early next year.

- NZPA