Item 2.02. Results of Operations and Financial Condition
On June 9, 2023, Muscle Maker, Inc. (the "Company") issued a press release
announcing certain unaudited preliminary financial results with respect to the
operations of Sadot LLC, a Delaware limited liability company and a wholly owned
subsidiary of the Company. A copy of the press release is being furnished as
Exhibit 99.1 to this Current Report on Form 8-K.
As provided in General Instruction B.2 of Form 8-K, the information in this Item
2.02 of this Current Report on Form 8-K (including Exhibit 99.1) shall not be
deemed "filed" for purposes of Section 18 of the Securities Exchange Act of
1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities
of that section, nor shall it be incorporated by reference into any registration
statement or other document filed under the Securities Act of 1933, as amended,
or the Exchange Act, except as shall be expressly set forth by specific
reference in such filing.
Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain
Officers.
On October 19, 2022, the Company formed Sadot LLC, a Delaware limited liability
company and a wholly owned subsidiary of the Company ("Sadot"). On November 14,
2021 (the "Effective Date"), the Company, Sadot and Aggia LLC FC, a company
formed under the laws of the United Arab Emirates ("Aggia") entered into a
Services Agreement whereby Sadot engaged Aggia to provide certain advisory
services to Sadot for creating, acquiring and managing Sadot's business of
delivering food farm to table, wholesaling food and engaging in the purchase and
sale of physical food commodities. The closing date of the Services Agreement
was November 16, 2022. The parties entered into an Addendum 1 to the Services
Agreement on November 17, 2022.
Subject to certain net income thresholds, Aggia has the right to nominate up to
eight directors (the "Designated Directors") to the Board of Directors (the
"Board") of the Company, seven of which will meet the independence requirements
of the NASDAQ Capital Market and the Company will take such actions as
reasonably required to name the directors which Aggia has the right to nominate
to the Board. To date, the following directors have been nominated by Aggia and
subsequently appointed to the Board:
? On December 27, 2022, Aggia nominated Benjamin Petel as the initial Designated
Director and the Board voted to appoint Mr. Petel as a director of the
Company.
? On December 31, 2022, Aggia nominated Hannah Oh and Ray Shankar as directors
to the Board after Sadot has generated $3.3 million in net income and the
Board voted to appoint Ms. Oh and Mr. Shankar as directors of the Company.
? On April 10, 2023, Aggia nominated Marvin Yeo and Paul Sansom as directors to
the Board after Sadot has generated $6.6 million in net income and the Board
voted to appoint Mr. Yeo and Mr. Sansom as directors of the Company.
On June 9, 2023, Aggia nominated Mark McKinney as a director to the Board after
Sadot has generated $9.9 million in net income and the Board voted to increase
the size of the Board from twelve to fifteen and appointed Mr. McKinney as a
director of the Company to fill one vacancy. Aggia is entitled to nominate two
additional directors to fill the remaining vacancies. Since January 1, 2021, the
Company and Mr. McKinney have not entered into any transaction nor is there any
currently proposed transaction, in which the Company was or is to be a
participant involving an amount exceeding $120,000, and in which Mr. McKinney
had or will have a direct or indirect material interest.
Mark McKinney, age 60, is a global leader with +30 years of executive, senior
level domestic and international experience including, CEO, COO, President, Vice
President, and Senior Director responsibilities across six countries and three
continents. From 1993 to 2015, Mr. McKinney served in various senior roles at
the Dole Food Company, including Senior Director positions in Dole Asia, Ltd.
and Dole Europe S.A., President and Managing Director of Dole Thailand and
President of Dole Packaged Foods Asia. Following his tenure at the Dole Food
Company, Mr. McKinney served as Chief Operating Officer of Fruit Growers Supply,
the supply division of Sunkist Growers, from 2018 through 2021 where he directly
managed six business verticals (corrugated plant, post-harvest coatings, pallet
manufacturing, packing house technologies, retail farm centers, and timber
operations). From 2021 through 2022, Mr. McKinney served as the Chief Operating
Officer of Local Bounti (NYSE: LOCL), a company specializing in ag-tech and
indoor farming. Mr. McKinney received his MBA with a concentration in
International Business/Corporate Finance from Claremont Graduate University,
Peter F. Drucker Graduate Management Center, and his Bachelor of Science in
Chemical Engineering with a minor in Chemistry from California Polytechnic
University.
Item 9.01 Financial Statements and Exhibits.
Exhibit Number Description
99.1 Press Release dated June 9, 2023
104 Cover Page Interactive Data File (embedded within the Inline XBRL
document)
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