EXCLUSIVE: Muscle Maker's New Subsidiary Sadot Clocks Over $54M Revenue In Debut Month

Muscle Maker, Inc's GRIL new subsidiary Sadot LLC generated $54.19 million in revenue for November, its first month of operation and management by AGGIA LLC FZ.  

What Happened? For November, Sadot completed 26 commodity shipping transactions in seven countries consisting of various commodities like food oils, white wheat, and soybean meal.

On November 18, Muscle Maker disclosed an agreement between Sadot and AGGIA under which AGGIA will manage the day-to-day operations of Sadot, focusing on shipping, trading, sourcing, farming, and production of physical commodities.  

The agreement could eventually lead to a change in the makeup of the Muscle Maker board of directors and result in a significant issuance of common stock to AGGIA.  

This is a pay-for-performance agreement where AGGIA can earn shares of Muscle Maker common stock based solely on net income. The acquired shares are calculated using net income divided by a premium share price of $1.5625 per share.  

AGGIA could earn up to 14.4 million shares by generating $22.5 million net income for Sadot.

Why Does It Matter? Michael Roper, CEO of Muscle Maker, stated, "The $54.19 million revenue Sadot generated for November alone pushes the total company revenue for the entire year to date upwards of 725% in just one month, raising our year-to-date revenue to $62.86 million."  

Roper continued, "While AGGIA focuses on the commodity side of the business, the current Muscle Maker team continues to focus on growing the company through our Pokemoto franchising efforts. Our strategy remains the same."

"As a matter of fact, last week, we announced the Pokemoto division has crossed a milestone by signing 50 franchise agreements. This structure allows the Muscle Maker team to focus on franchise growth while the AGGIA team focuses on the commodity shipping side of the business. We believe this leverages each team's strengths while also creating a more diversified company overall."

Price Action: GRIL shares closed higher by 1.66% at $0.89 on Friday.