I still think fronting JP (if I were Jill/Carlos) at least $1M is a smart move for 3 new locales BUT, I also think 2 locations would make a world of difference if she wanted to limit her upfront outlay.
IF they would look at lower cost of living areas and assuming 25% of build out costs would be needed, I think she could get away with providing $600k for 2 ! (1.2M x 2 locales at 25%)
SO let's think this way...Los and Jill still amass 7.3M GIGL shares each (non-reporting amt) for an outlay of $183K each plus Jill's $600k = 183+183+600 = $966k
If PPS would just get to 15 cents on news of expansion AND avoidance of rights offering she/they make:
7.3M x 15 cents (Jill) = 1,095,000 PLUS warrants 5 cents in money = 250k
7.3M x 15 cents (Los) = 1,095,000
Grand total = 1.095+1.095+250 = $2,440,000
net profit for team Michaels = $2,440,000 - $966,000 = $1,474,000
*** GIGL also gets $500K IF/WHEN she exercises those 5M warrants and that inflow can be used for another location plus some operating cash. Would someone explain this scenario to Los and Jill, please ? TIA
