By: Tomas Ronolski - AllPennyStocks.com News

Thursday, March 6, 2014

Microcap and nano-cap investors look for steps in the right direction for developmental companies. It only makes sense and nearly every one of the thousands of companies that fall into this arena aren’t generating revenue and merely building-out their business models. For starters, most need to cleanup their share structure that all-to-often is bloated with outstanding and authorized shares that will never facilitate a decent price per share. That’s what Fresh Promise Foods, Inc. (OTCQB:FPFI) has recently done against the backdrop of a name change (from Stakool, Inc.) and new management as it seeks to penetrate the enormous health foods industry. Last April, when it was still called Stakool, the company brought in Kevin Quirk, an expert in brand and financial management, to set what is now Fresh Promise Foods on a clearer path through a more expansive business model. Still in the early stages, the company is focused on three areas in the nutritional food and drinks industry: food technology, consumer products and value added.

Since Quirk has stepped in, Fresh Promise has retired 1.1 billion common shares and reduced their authorized shares from 4 billion to 475 million. The company currently has 65 million shares outstanding. The more reasonable share structure allows the company to raise some cash in the future, but hopefully that will move will be held off for a higher share price (so as not be too dilutive) or the company can manage with a small funding.

Although there are no revenues to speak of a quick look at SEC filings show that Quirk has trimmed costs associated with consultants and contracted the company’s net loss. For the six months ended June 20, 2013, consulting fees declined from $114,401 to $31,068. In the nine months ended September 30, net loss went from $3.81 million in 2012, or $1.31 per share, to only $447,502, or 1 cent per share. As should be expected, the company still has the “going concern” statement in its filings.

With some fundamental changes in the rearview mirror, the company said Wednesday that it has partnered with fellow Atlanta-based company PREP Shared Kitchens. PREP is a unique concept that provides a state-of-the-art, fully certified, commercial kitchen facility that is shared by those in the culinary space, including specialty food producers, mobile food services and food artisans. PREP is also just getting off the ground, but given the competitiveness of the food industry and the need to manage expenses for small businesses; it’s an operation worth watching for growth.

In the long-term agreement between Fresh Promise Foods and PREP, FPFI will become the anchor tenant and strategic partner at PREP’s first facility in Atlanta.

“[PREP’s] desire towards more locally sourced artisan companies, along with their own internal growth plans that overlap nicely with ours, makes them the perfect company for us to forge a relationship. Equally important is the quality of PREP’s other members which can provide us an acquisition pipeline, as well as, PREP’s ability to centralize procurement with suppliers, building buying power and improved margins,” said Kevin Quirk in a statement this morning.

Although the company still has a long road ahead of it, the markets seem optimistic about Fresh Promise taking another step in development. Shares are trading even at $0.0065 with 300k shares changing hands in mid-session action. At the current price per share, the stock is up 195 percent so far in 2014.

Copyright © 2014 AllPennyStocks.com. All rights reserved. Republication or redistribution of AllPennyStocks.com's content is expressly prohibited without the prior written consent of AllPennyStocks.com. AllPennyStocks.com shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.