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Fresh Promise Foods Inc (OTCMKTS:FPFI) Is Today's Stock Focus

Fresh Promise Foods Inc (OTCMKTS:FPFI) Is Today's Stock Focus
Written by
Jarrod Wesson
Published on
July 26, 2017
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Trading volume in Fresh Promise Foods Inc (OTCMKTS:FPFI) increased in July, but without any clear reason to justify it. Thus, the Insider team became interested in the stock and researched the previous news to understand what's going on. We saw that the company seemed to be growing through agreements with other companies in the past, but it did not report news in 2017. We will tell you more in this piece, but first of all have a look at the price action.SourceBusiness HistoryFPFI was incorporated in the State of Delaware in 1993. The company has gone through many business transactions, capital changes, and name modifications. What you need to know is the following. On June 16, 2011, the company entered into a Letter of Intent of Sale and Purchase with Anthus Life Corp.; a privately held Nevada corporation. The business objective of this company was to develop and manufacture natural and organic food products and package it for consumer consumption. The agreement was very interesting for both parties, as FPFI entered into the organic food industry and acquired new know-how, whereas Anthus Life Corp. became a public entity. On September 26, 2013, the name was changed to Fresh Promise Foods Inc. Since this time, FPFI has changed its capital structure several times.

  • On September 26, 2013, the number of authorized shares of common stock was reduced from four billion to four hundred seventy-five million.
  • On May 13, 2014, the number of authorized shares of common stock was increased from four hundred seventy-five million to nine hundred seventy-five million.
  • On October 16, 2014, the company increased the number of authorized shares of common stock from nine hundred seventy-five million to two billion.

Most Interesting DevelopmentsOn September 24, 2015, Harvest Soul, which is a completely owned subsidiary of Fresh Promise Foods, announced the launch of Harvest Soul Blended Juices:

“Harvest Soul Organic Blended Juices are a delicious line of fiber-rich blended juices, not pressed, packed with superfood vegetables and fruits, like spinach, pineapple, blueberries, kale and celery. Blended juices are never pressed, so beneficial fiber is retained making these functional and organic juices supportive of a healthy lifestyle.”

The press release explained the research findings that consumers who rely on pressed juices for their daily nutrition intake miss out the nutritive benefits that can be found in natural fiber and protein, which is wasted during the juicing process. Kevin P. Quirk, Fresh Promise Foods CEO, and Harvest Soul president, stated:

"We feel our Harvest Soul Organic Blended Juice line-up offers consumers a level of variety across our brand portfolio. We created this product line to co-exist with our Harvest Soul Chewable Juices, because while it retains high fiber content and is nutrient dense like the chewable line, the blended line will have broader appeal. By offering juices without the added seeds, nuts and berries at very competitive price-point, our new blended line will entice new consumers and open up new channels. This has clearly been demonstrated with a recent purchase order that surpasses any others we've received to date." Source

On October 15 of 2015, Harvest Soul introduced its brand-new e-commerce storefront website that is hosted on the world's largest internet retailer Amazon.com. Harvest Soul also announced simultaneously that Michael Jenness will be Vice President of the company's e-commerce Channel. This announcement is in line with the company’s rapid expansion policy. The market obviously appreciated the news. Kevin P. Quirk, President of Harvest Soul, commented on this new development:

"Establishing a new channel for Harvest Soul allows us to reinvent our online environment and create a more user-friendly, reliable experience through the Amazon.com brand. With the hiring of Michael and the new e-commerce opportunity, we are in a better position to efficiently satisfy our consumers constantly evolving preferences -- whenever, wherever -- in the same way we are earning their loyal support at retail."

As VP of Harvest Soul's Ecommerce Channel, Jenness will contribute his expertise and familiarity with Amazon.com and the broader e-commerce space to fuel further corporate growth. Jenness stated:

"I have worked in ecommerce for over a decade and a half with the world's largest brands to the smallest start-up, and recognize that Harvest Soul has numerous attributes that will resonate with online retailers including pure-play giant Amazon.com to the hybrid e-tailers in the marketplace with click&collect programs.” Source

Current amount of shares outstanding The following are some stats regarding the amount of shares outstanding. The market participants always concerned about equity dilution will appreciate this information.Market Value$248,945a/o Jul 21, 2017Authorized Shares2,000,000,000a/o Aug 18, 2015Outstanding Shares829,815,693a/o Jul 08, 2016Source: OTC MarketsShareholders interested can contact the transfer agent; Pacific Stock Transfer Co.Financial statementsThe last financial accounts reported are the following. These are the assets:June 30, 2015December 31, 2014AssetsCurrent AssetsCash$25,568$1,663Accounts Receivable5,010-Inventory61,02420,935Other Current Assets10,273515Total Current Assets101,87523,112Property, Plant & Equipment net113,41790,559Website Development & Software Purchased4,7824,782Total Assets$220,074$118,454SourceThe following are the liabilities:LiabilitiesCurrent LiabilitiesAccount payable$297,929$298,815Accrued expenses84,32569,087Convertible note payable806,475388,957Accrued salaries due officers108,971330,465Convertible note derivative liability969,212584,857Loan due related parties30,45223,600Capital lease liability-short term16,5417,678Total Current Liabilities2,313,9051,703,458Long Term LiabilitiesCapital Lease Liability net of current portion50,14635,748Total Liabilities2,364,0511,739,206SourceThe company may have changed its financial situation in the years 2016, and 2017. If new financial reports are released and the financial statements are more solid, the share price could creep up. Hence, be alert on the company's announcements.What can be going on and conclusionIt is easy to explain what can be happening with the company only by looking at what happened in the past. The company tends to reach agreements with other businesses to grow. Hence, the same can be happening now. If this is the case, then be sure to follow the news closely, as an announcement may be coming soon. Another scenario may be that a new shareholder is accumulating a position or the company is preparing to reduce the total amount of shares outstanding (It happened before). To sum up, this stock may surprise us again as it happened in the past.We will be updating our subscribers as soon as we know more. For the latest updates on FPFI, sign up below!Image courtesy of Soil Association via FlickrDisclosure: We have no position in FPFI and have not been compensated for this article.

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