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Agreed reduction of CEO salary.
https://backend.otcmarkets.com/otcapi/company/sec-filings/12743493/content/html
Item 5.02 -- Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
On May 9, 2018, Petrogress, Inc. (“the Company”) entered into an Amendment No. 2 to Employment Agreement (the “Employment Agreement”) with Christos Traios, President and Chief Executive Officer of the Company, pursuant to which the parties agreed to reduce Mr. Traios’ base salary to $5,000 per month.
Item 9.01 -- Financial Statements and Exhibits
(d) Exhibits .
Exhibit
Description
10.1
Employment Agreement dated April 1, 2016 by and between Petrogress, Inc. and Christos Traios (Incorporated herein by reference to Exhibit 10.2 to the Company’s Annual Report on Form 10-K filed with the Commission on April 13, 2017).**
10.2
Amendment to Employment Agreement dated January 12, 2018 by and between Petrogress, Inc. and Christos Traios (Incorporated herein by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K as filed with the Commission on January 12, 2018).**
10.3
Amendment No. 2 to Employment Agreement dated May 9, 2018, by and between Christos Traios and Petrogress, Inc.* **
* Filed herewith.
** Signifies a management agreement.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
May 9, 2018
PETROGRESS, INC.
/s/ Christos Traios
Christos Traios, President and CEO
EXHIBIT INDEX
Exhibit
Description
10.1
Employment Agreement dated April 1, 2016 by and between Petrogress, Inc. and Christos Traios (Incorporated herein by reference to Exhibit 10.2 to the Company’s Annual Report on Form 10-K filed with the Commission on April 13, 2017).**
10.2
Amendment to Employment Agreement dated January 12, 2018 by and between Petrogress, Inc. and Christos Traios (Incorporated herein by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K as filed with the Commission on January 12, 2018).**
10.3
Amendment No. 2 to Employment Agreement dated May 9, 2018, by and between Christos Traios and Petrogress, Inc.* **
* Filed herewith.
** Signifies a management agreement.
Exhibit 10.3
AMENDMENT NO. 2 TO
EMPLOYMENT AGREEMENT
This Amendment No. 2 to Employment Agreement dated effective as of May 9, 2018 (this “Amendment”) is entered into by and between Christos P. Traios (“Executive”) and Petrogress, Inc. (“Employer”, and together with Executive, the “Parties” and each individually, a “Party”).
WHEREAS, the Parties entered into that certain Employment Agreement dated as of April 1, 2016 as further amended by that certain Amendment to Employment Agreement dated January 12, 2018 (as amended, the “Agreement”); and
WHEREAS, the Parties desire to amend certain provisions of the Agreement relating to compensation payable to the Executive;
NOW THEREFORE, for good and valuable consideration, the receipt of which is hereby acknowledged, the Parties agree to modify and amend the Agreement as follows:
1. Amendment of Section 4(a) . Section 4(a) of the Agreement is hereby amended and restated in its entirety to read as follows:
“(a) During the Term of Employment the Employer shall pay the Executive a salary at an annual rate of U.S. $60,000.00 (Sixty-Thousand U.S. dollars (the Base Salary). The Base Salary will be payable in monthly installments of ($5,000) Five Thousand U.S. Dollars on the 1st day of each month effective as of May 1, 2018.”
2. Miscellaneous .
2.01 Effect. Except as amended hereby, the Agreement shall remain in full force and effect.
2.02 No Waiver. This Amendment is effective only in the specific instance and for the specific purpose for which it is executed and shall not be considered a waiver or agreement to amend as to any provision of the Agreement in the future.
2.03 Defined Terms. All capitalized terms used but not specifically defined herein shall have the same meanings given such terms in the Agreement unless the context clearly indicates or dictates a contrary meaning.
2.04 Governing Law. This Amendment shall be governed by, and construed and enforced in accordance with, the internal laws of the State of Delaware, without regard to conflicts of laws principles.
2.05 Counterparts. This Amendment may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument, and each of the parties hereto may execute this Amendment by signing any of such counterparts.
https://backend.otcmarkets.com/otcapi/company/sec-filings/12743493/content/html
Me as CEO? Thanks PencilNeckGeek. Just seeing some of the other posters heads exploding if that actually happened would be pretty entertaining. But contrarian investing (and consulting others) is what I have done for a long time so it's second nature for me.
Anyway...I hope it's sinking in how Parsi rented the names and resumes of this superstar team. Throw some cash and shares at all these people and Parsi gets to parade their experience around like they will do the same with $GIGL. We learned that's not the case
"Welcome to The Grand Illusion!" (Yes, the Styx song...LOL)
So, under the man responsible for expanding the company, $GIGL actually lost a location and what does Parsi do? He promotes him to CEO. In a real business, Gay and his do nothing cronies would get terminated.
The proof of this charade was that Parsi spoke for this entire webcast. Gay was absent. Again, look at actions, not what Parsi says. We already learned that the truth and Parsi aren't best friends. In fact, he avoids the truth quite often.
I guess the part-time CEO was too busy with his other two companies. But not to worry, Gay will get around to $GIGL....one day....soon....really...How about from 1:00-2:00pm a week from Wednesday? He can pencil $GIGL in.
HC...I sincerely don't think about "why" Gay, Parsi, or anyone associated with $GIGL do things. I focus on "what" they do. I'm not being sarcastic or snarky to you, I mean this.
You posted to me: "I have yet to hear you say what is in it for Phil" I don't know and it doesn't concern me. Allow me to explain.
Your source of anxiety is trying to figure out what all these characters are thinking. Sorry, but you're asking questions you'll never get the answers to. No matter how many hours you think about it, there's no way to know their thoughts or motives. Honestly, give yourself a break (I sincerely mean this) and don't keep asking "why."
That's why I focus on what people do. Observe their actions. Yes, thoughts come before behaviors, but it doesn't help in this context.
Plus, looking for logic where there is none is futile.
Moving along.... I thought I'd ramble on some more.
$GIGL is in this predicament as a result of numerous errors by Parsi and the $GIGL gang. Parsi for his mismanagement of company funds and paying himself and friends obscene money given what they do for it and what stage $GIGL is in, in it's growth cycle.
If Parsi's $300,000 annual salary, Gay's (Triple Enterprise) $60,000 annual package (shares/cash), and who knows what other compensation he's dished out to the $GIGL friends and family, plus toxic financing...and over the years, all of it went to the restaurant's bottom line instead, $GIGL wouldn't be in this situation. If they had a competent CEO they would have been able to raise outside funding. That I know with 100% certainty.
How can this be saved? Here's some basic ideas. Don't get hung up on the details or the order I wrote them, I'm just free associating here so a couple steps might be switched around or timed differently based on the events as they play out.
1) Take the offering money, pay off the landlords and if there's any left, any vendors/suppliers.
2) The $GIGL gang pool their shares (and contribute cash) and sell enough to raise $500,000-700,000 cash. Then, ask for matching funds (1 to 1 or 1 to 2ish) from outside investors. Let's say the gang pools $500,000 cash. Then, they ask investors to match that amount 1 to 1 (dollar for dollar or dollar to two dollars etc.).
3) Let's say they get someone to match their $500,000 with $500,000 for a total of one million dollars.
4) With the million in the bank, they try to get an operating line of credit from their bank or their investor for $200,000-300,000. Do they still have that American Express line of credit? I think it was $175,000? Not sure, anyone remember?
5) Parsi and Gay will both step down and remain on as shareholders/investors. They caused this mess, they aren't the people to fix it. You don't call an arsonist to put out a fire he started. The investors who put up the $500,000 select a full-time CEO. This would have been a condition of getting the $500,000, they get to pick the new CEO and any other exec/staffing needs.
All the rest of the execs/advisors/consultants (the rest who are compensated) are reviewed for what they accomplished in the last three years and if they are needed moving forward. If they did nothing, they get terminated. Anyone who is selected to stay gets put on performance based compensation. They get zero until a new store is open and profitable. Anyone have a problem with that, terminate their involvement.
6) Now, with $1 million in cash, $200,000+ operating line of credit, no significant outstanding bills, and monthly burn rate far better, they go to the mall operators and hold them to their "red carpet deals."
Negotiate one store in the L.A. area (actually, right next door in Orange County would be even better demographic wise).
But they need to maximize their marketing resources here so it needs to be in the SoCal area.
7) Let's say they strike a deal for one decent store location (The Santa Anita location that was mentioned before would be good if Orange County isn't an option).
8) When designing the store, add 1,500-2,500 square feet to the original size. If the current locations are too often overcrowded, they are too small.
9) Now loop in Michelle Steinberg, Jillian, Tia, and who ever else can be looped in and have a Hollywood style celebrity only red carpet grand opening. (Yes, I ragged on Parsi about the celebs, but this is a one time event for maximum exposure). Michelle can easily organize this. They do these for all kinds of events now, not just movie openings or awards shows. In the future, you have have Jillian cooking events. They should add a 2nd celeb with her to help draw people in.
Then market the hell out of this new, improved, expanded location. New menu, new activities, install better lighting, sound, and plasma TVs. Make it more advanced than the current locations. You don't want these stores looking dull and drab like school class rooms. They don't have to be extreme like arcades though.
10) Get someone to really dive into the operational costs to get better deals with vendors with increased volume orders for there stores.
11) When $GIGL as a company is profitable, then execs compensation kicks in but only as a percentage of profits, with the viability of the company coming before execs pay. They make money when they operate a profitable company only.
Those are just some general ideas and NOT inclusive by any stretch. There's tons of other things to do too but you get the idea. It's doable as a turn around.
Yeah PencilNeck, no entity or whale is accumulating $GIGL stock. No one believes that for a minute. Someone confused volume for an organized crew planning a hostile take over. It's just ordinary retail buying on a hope and a prayer (averaging down...LOL).
Okay, just listened to the webcast and the new CEO....oh wait, nope, the "new" CEO is still a ghost. Told ya folks, NOTHING has changed about that job title shuffle. ZERO. This webcast was all Parsi, the guy who will work as the CEO regardless of what he told shareholders.
Some take-aways from the webcast--to begin with is it's painful to listen to Parsi. Will no one around him be honest and tell him how badly he comes off?
And to all the Phillip Gay fans...he was the one who should be speaking anyway, not Parsi. Why is the chairman out pimping the company and the CEO is silent? We all know why! Same same.
Anyway...
1) Parsi is real proud of-
a) tricking kids into eating food with hidden ingredients (that's a
horrible way to present that topic).
b) Celebrity customers. He's more than proud, he's obsessed. For
example, I cannot believe he said what Jay Z/Beyonce's birthday
party tab came out to. That was just stupid!
c) Publicity in gossip magazines/websites. Enough said.
2) Way to go, saying how the mall companies use "tricks" in their business and now they have one of their employees who know all these tricks on his, uh hem, $GIGL's team. Again, it's glaringly obvious that Parsi has a dishonest world view. Tricking the kids by hiding food, the mall operators use tricks, now they have the employee who knows all the malls tricks, etc. It's not a good idea to be insulting the mall operators and then asking them to front $1+ million.
3) He blew it with how he spoke about the "problem" with their financials and the malls. There are opportunities or challenges, never problems. He doesn't know how to present information well.
4) He never got around to discussing Gay and the CEO transition like he said he would in the beginning of the webcast. Listening to Parsi go on and on, you know he's not giving up being in control.
As many of us said, this offering money will NOT go to expansion, Parsi confirmed that 100%. It will go to "financials" and they will have to dilute AGAIN to get money to expand.
They have NO "strategic investors" lined up or anyone giving them any money. I thought all these phantom companies, with their "more than a coincidence" relationships, were partnerships in the making?
Nope, nada, ZERO. I guess being on someone's friends list on a website isn't what it used to mean!
If this webcast wasn't a wake up call, people are brain dead or have a record case of denial.
No new CEO-Gay.
No investors.
No partnerships.
No expansion money.
More dilution.
More lost time.
As someone already posted...rinse and repeat.
I know, let's "wait and see!"
Did I miss something? Where does all this talk about Raptor/Reed/Buffet/Gates/Ichan/Milken investing in $GIGL coming from?
Is it that blank doc in the filing that had "Reed" on it (that was mis-filed)?
Is it that some of these entities share an attorney?
Does someone live next to Parsi's dog groomer?
Is Parsi's wife on someone from Reed's Facebook friends list?
Has anyone from any of these companies said anything about doing business with $GIGL in the same sentence? Not a company in the same space as $GIGL, but did any of them identify $GIGL by name? (Wait for it..."they wouldn't do that.")
Just a yes or no will suffice.
I agree about the oil issue. I like it myself. The less sexy (trendy) a stock, the better I like it for sustainable growth.
But we all know that in OTC Land, strong fundamentals don't always get the respect they deserve.
I suspect this one will...in time.
Crude Oil - Are You Ready For Triple-Digit Oil Prices?
May 6, 2018 11:56 AM ET
Summary
We are in a boom-bust cycle, with no end in sight, rather than a 'new oil order', and shale oil will contribute to, not dampen it.
Inventory levels are balanced today and forecast to remain so in 2018, supporting Brent spot prices at levels of $60 Brent a barrel or more.
Barring a global economic recession in this decade, we are in the early innings of new, demand-led bull market. And for all the talk of EVs, oil demand is soaring.
https://seekingalpha.com/article/4170446-crude-oil-ready-triple-digit-oil-prices?ifp=0
Vet-you obviously haven't read the $GIGL PR from Feb 2015 where it states three different ways that Gay is responsible for the expansion of $GIGL. That was his one task from Feb. 2015 to the present. He had one job.
This isn't Microsoft where you have firmly defined job responsibilities. This is a start up and the only thing that changed with Gay from then to now is a job title. Three letters.
Are you waiting to see if they close another store? Or maybe another three years? Guess what? You don't have three years to wait, the doors will be closed long before then at this rate.
Because they aren't expanding with what they have on the table right now. They have money to maybe pay their past due bills and nothing left over.
Let me guess, if Gay actually makes an appearance in this show everyone will be dancing in the streets?
Oil prices the highest since 2014!
"Why are oil prices rising?"
http://money.cnn.com/video/news/2018/05/04/why-are-oil-prices-rising-orig.cnnmoney/index.html
European markets mixed amid rising oil prices; Air France down 13%
Oil futures touched their highest level since late 2014, with U.S. WTI jumping above $70 and Brent crude rising as high as $75.89 — the highest it has been since November 2014.
https://www.cnbc.com/2018/05/07/european-markets-turn-attention-to-oil-prices-and-politics.html
Thank you VSAStory. Yes, I bought in early on and it wasn't until the ramifications of Parsi's poor decisions and a better awareness of Gay's tasked role and failure to expand $GIGL that I became publicly critical of these two on here.
But I focused on these two lately and supported my statements with past and real time data. (That's why my posts are so long winded...LOL).
Awareness is a different animal than bashing. Thank you again for recognizing that.
Have a good one!
Okay, let's run through those points with what we know, shall we? I guess Parsi thinks anything that comes out of his mouth is gospel truth and no one questions it.
BTW...LTG, It's all good. I question Parsi and Gay, not the company itself. That's my issue...these two clowns who treat shareholders like they are idiots. That is why I keep calling them out on their shuffling and lies.
Okay, let's go!!!!!!!
In The Q & A Joey confirms Gay as CEO.
Gay's responsibilities have not changed, only a job title swap. It means nothing. And yet we haven't heard from Gay at all? Could it be because he's too busy at his two other companies besides $GIGL? So if he works at three companies in a 50 hours work week, how much of that does $GIGL get? Ten hours? Yeah, that's who I want to lead expansion alright (sarcasm). Think people, think!
He confirms 600K raised and it was lower then expected.
No surprise, some of us said they would raise about 10% of the goal. And they owe $400,000+ to the landlord(s) right? Who knows what other bills and they have to be paid before they can go to these mall owners about expansion. Someone else I'm sure knows the amount of bills due. So, that means there is not any money to expand right now. Their best case scenario is get the landlord and vendors paid and then start fundraising all over again looking for money to expand but with some bills paid. Unfortunately the longer that takes, since they are losing money they will be in arrears in bills again shortly. Shareholders need to accept that they have no money to expand now.
And it will be used for expansion, that is to show some financial ware with all. Hahahaha.....the Parsi shuffle again! Sneaky...he just says what he wants, reality and truth be damned! See the previous paragraph about this. In his mind, paying his past due bills is part of an expansion plan ("financial ware with all"), as if that is a bonus to the landlords and investors. No Parsi, everyone needs to pay their bills in full and on time. You're not a superstar businessman if you paid some past due bills. And he considers that part of his expansion business plan. Parsi shuffle baby!
He confirms streamlining.
Really? No kidding! He doesn't want to go with the bloated budgeting route? Everyone wants to streamline costs, that's a given. But HOW WILL HE DO THAT? Did he say? Parsi shuffle! I get it...make a bold statement about the obvious and hope people thinks it's something brilliant. Who's buying this?
also says expansion is #1 priority.
It's been a priority for three years with Gay in charge of expansion and they lost a store! Another given. I'm surprised he didn't say "We're committed to turning a profit one day."
Gay is tied to the stock as is Parsi and
Oh, this is the most honest thing Parsi said! Tied to making money for themselves. Is Gay's company (not him personally, there's a difference) still making $5,000 a month in compensation? Stock/cash/who knows? How is Parsi's total compensation cut? Parsi shuffle!
Para phrased
"It behooves us to expand"
Another given for any company. And....it has behooven them to expand for years and they lost a store. Parsi shuffle!
Again buying op JMO!!
Knock yourself out.
Did he mention that that they are super committed to breathing oxygen on a daily basis? Really, who buys this absolute load of rubbish?
As I posted before, if it was a crypto or pot company, it would have some momentum behind it.
But it's in the oil industry which is as basic as it gets. That's why I like it, but I don't follow the flavor of the day and that's what gets attention it seems.
Honeycomb-Sorry, I don't have a theory on the volume of $GIGL shares. If I understand your previous posts accurately (correct me if I don't), you theorize that there is a person(s) accumulating large amounts of $GIGL stock because the volume has gone up, right?
All I can say is that I have not come across anything supporting that position. It could be happening, but until we have something or someone saying they are or filings are submitted, there's nothing for me to say.
Otherwise, we can what if ourselves all day long and still not know. If it's an endless loop equation like that, I wait for more info.
LTG-really? $GIGL, not me.
Summer? Wow, that's some hardcore data. And specific too! The entire OTC market should be higher?
Are you a quant?
LOLOLOL...no, you're a comedian!
Sorry, that's not showing Gay being responsible for Parsi's salary cut, that's just Gay DISCUSSING Parsi's pay cut. I read that statement before and that's why I thought you had something different. There is nothing showing Gay had anything to do with Parsi's salary cut.
That's also why I posted the false causation theory, so we could avoid that problem.
But I'm not disappointed, Gay has accomplished nothing in three years (well, except hire his own company at an inflated rate), why start now. A job title in a little company like this means nothing. This isn't Microsoft, where job titles are defined roles.
I'm discussing Parsi's salary cut here, does that mean I'm also responsible for the reduction?
Plus we don't know if the monthly pay "cut" was a real pay cut or redistribution of his compensation.
More word play by Parsi, which he is known for.
Oh, LTGiggler...I saw that Reed's document, which was not completed. If there was a deal done with them, $GIGL passed up their mandated time frame to 8-K it. I don't think Parsi would sit on perceived good news or want to cause an SEC violation.
Having the same lawyer, you ask? Well, it means they both have legal representation. That's what we learn from that.
I once had the same manager as Ice Cube...we didn't do any rap albums together because of it though. LOL
What is your projection based on? I mean, data wise (not guessing or bashing).
Look forward to your analysis!
Awesome. Can you provide a link to where it says Gay is responsible for Parsi's salary cut?
And, what the exact restructuring of his compensation is? (The PR only said a reduced salary pay out, not reduced compensation).
I'd like to learn how Gay did this. I'd hate to think it's attributable to false causation theory (Because event A happens before event B, event A is falsely credited for causing event B).
Thanks. I look forward to your reply!
No truer words have been spoken. I must have missed the memo that said Gay will suddenly do something he hasn't done for three years....his job. Oh wait, let's change his job title! He can still be part-time, because, you know, he has his business to look after.
We don't want $GIGL to distract him from that!
Same situation will get the same results. ZERO.
Excuses don't pay the bills.
I didn't see how this consulting company is connected to $GIGL. Can you provide a link to where $GIGL has hired them? Darn, how did I miss that?
The possibility of any franchises happening isn't quantifiable. I just know it hasn't. I also know it is more difficult to franchise an unprofitable company and is inadvisable to try it. It's counterproductive.
"Here, pay us a franchise fee and we'll show you how to open a business that doesn't turn a profit."
Not a great way to sell a franchise. LOL
But if it's so easy to sign a "few franchise deals" why hasn't it been done already? That falls into the category of high net worth investors throwing millions of dollars into $GIGL and it's guaranteed to increase in value right way (or however it was worded). Hasn't happened so it doesn't count in the current reality.
Shoulda, coulda, woulda, and their cousin, if this-then that, is not a business plan.
Saying to add a few franchise deals improves the company, is a given. Kind of like saying if you walk in the rain, you get wet. No kidding!
I'm dealing with the facts as they stand now. You can imagine all you want, no ones stopping anyone there, but imagination isn't profit.
Disney doesn't make money from what was in Walt's head. It made money when his thoughts were executed. Thoughts alone aren't profitable. Listen to any of Parsi's PRs, he has TONS of thoughts. So what? LOL
The great thing about business is you have one simple, solid metric that tells you if the business works or not...profit. If there's no profit, the business doesn't work in its current form. It might work with changes, but not in its current form.
What? Gay was in charge of business development. Was he turning down himself?
Was his left hand rejecting proposals from his right hand?
Were there little people under his desk telling him what to do?
If you had three years to accomplish one task and not one of your ideas was good enough to materialize, then you promote the guy?
No, you fire him.
You don't promote failure. You don't make excuses for failure. You don't justify failure.
But that's what shareholders want to do just to feel like there's hope? Really?
If you are buying this dance routine that Parsi and Gay are selling you, then you deserve to lose your investment. Now that the truth is bubbling to the surface, you guys still want to make excuses for Gay? For Parsi?
As an investor, you should care about "what" happened. The bottom line. Now they have an offering and all that did was keep the lights on for a handful of months. No new stores AGAIN! No money!
You guys can keep ignoring my posts, that's fine. But I sure don't see anyone posting any facts to the contrary.
Did Gay open new stores in the three years he was tasked to do so?
Did any of these "rent a name" people do anything for $GIGL?
Did the celebs fulfill their ambassador contracts?
Did Gay commit to working as a full-time CEO for $GIGL or is his own company still his first priority?
The answer to all these is "no." Why these happened are just excuses.
$GIGL does NOT have money to expand. Period. You can't be in default on your lease with the mall landlord and then tell them:
1) $GIGL just raised around $500,000+
2) Although $GIGL owes them money, they aren't getting any
3) Then ask the mall owners to front $700,000-$1,000,000 for build out costs while being behind on lease payments.
That is not happening no matter how many times you post it or what Gay did in a past life.
If someone at the mall company accepted that deal, they'd lose their job. They don't "throw good money after bad" and that's exactly what you are saying they do by being in default but asking the mall company to front construction costs.
What Gay did with other companies before $GIGL doesn't automatically transfer to $GIGL. Their financial circumstances were different than $GIGL. The last three years Gay proved exactly that. With all his connections and experience he could not get one store built.
What is there to give this part-time CEO a chance with? He had his chance already. He's not serious enough about $GIGL to even work full-time at it. Are you kidding me?
$GIGL has to pay off their landlord to keep from getting evicted. You can't just snap your fingers and get landlords to change lease terms.
As for the warrant money ($800,000) that fully depends on shareholders exercising their rights there. That is not $800,000 in full sitting in the bank.
The imagination some people use here is remarkable. Either that, or people have zero business experience.
Satomi, one thing that has to be considered is the thrust of the problem here is determining the difference between incompetence and criminal intent/behavior. (Sorry for the long post, I thought I'd do a deeper dive on this topic than my prior efforts).
For example, making expansion projections that don't materialize because they weren't able to find investors, despite their efforts to do so, on the surface, is not criminal behavior. It's just part of doing business. Or if they changed their projections or for a number of other normal business reasons that prior decisions are changed. That's not criminal.
Doing legitimate marketing to try and improve the stock price is not manipulation, it's trying to improve shareholder value. Marketing is not criminal manipulation (It's legal manipulation, sure. That's what marketing is. LOL).
I've seen straight up penny stock scams and $GIGL really has little in common with them. The areas I think to focus on for potential criminal behavior are (and I'm stretching with these):
1) The conflict of interest arrangement $GIGL has with Gay's company to do the accounting and how his own compensation is wrapped up in the monthly $5,000 package. I would look at how the contract was awarded to his company (did they put it out for bid or did he just award it to his company?), and if the payment is in line with other companies that do the same service. I posted about this before that I used a very respectable (but expensive) tax firm down the street from the Glendale Galleria to do the accounting/tax work for a couple companies of mine and it was no where near $5,000 a month.
2) Look at what all these "consultants" or whatever their titles, actually did for their compensation or did Parsi just rent their names to prop up the company legitimacy? That's why I focus on Gay not doing the one thing he was paid to do since Feb., 2015. What efforts did he do to expand $GIGL since then? How about the others? Did he have any communications with investors at all? Meetings? Phone calls? Isn't that what his business does? How is it he could accomplish anything in three years with the stacked deck of connections?
3) Of course the celebrity ambassadors can be looked at to determine if they fulfilled their contracts. In the scheme of things, this is really a minor, civil issue (not criminal or SEC related). Sarah Jessica Parker is being sued regarding a promotional contract deal she allegedly didn't fulfill (not an SEC issue): http://www.foxnews.com/entertainment/2018/04/25/sex-and-city-star-sarah-jessica-parker-sued-by-jewelry-company.html
4) Okay....Parsi time. Once again, doing things to improve the value of the company but not successfully accomplishing them is not the definition of criminal behavior. That's really just marketing by an incompetent CEO. Plus, many, many things that companies try to execute fail to materialize. That's just how business goes. I don't think Parsi started out with any intent other than build a restaurant company. I don't think the company is in the position now that Parsi ever imagined. But through a series of bad decisions, he's backed himself into a corner. Criminal? Most of it, no. Incompetent? Yes.
The Bahrain deal? If he never had any interactions with anyone and just fabricated the entire thing, that's different than actually signing an LOI and the other party exercises their right to withdraw their offer. From what we know, the latter happened. Not criminal and the statements made about it don't appear to be criminal either. Even if he was outright lying, that doesn't mean a law was broken. The entire planet would be in jail if every lie told was a crime.
To date, what the evidence points to is Parsi reached his level of incompetence. He's just not a good businessman. There are glaringly large mistakes he made but again, from what we know, these aren't criminal acts.
What one person calls "misleading" the law might say is the cost of doing business. Failure is not a crime.
5) I would also look at how this offering money is spent. But Parsi even stated in the filings that money raised will go to operations of $GIGL. So, even if he and Gay pay some bills and pay themselves with the remaining funds, they have zero left for expansion. But they put this in the filings that they would do exactly that. They fully disclosed it.
If they don't pay the bills and pocket the entire amount, that's something to look at, but salary can fall into this catch all clause of operations, so they are covered even if they don't pay the bills and just pocket this cash as "salary and/or compensation." It's not a smart move, but it appears to be covered in the filings.
The key thing is if they put effort into something but failed at achieving it, that's not criminal in and of itself. Or, if they planned something, did nothing towards it because they changed their minds later on isn't a crime either. They failed to raise enough money to keep the existing stores open AND expand. They have to choose one but can't do both. That's not a crime. Changing plans of the direction of a company isn't a crime. How many times have we heard a business is "pivoting?"
So, no expansion right now...with what we know right now. I don't see where the "Let's give Gay a chance" comes from. We already gave him a chance for three years! He had one job and he accomplished nothing.
6) The catering. My prior posts about this point out there were at least two legal entities formed for the catering: GNH Catering and GNH Cc. Inc. One of them is still active, the other dissolved. What I mentioned before is to follow the flow of money for this. If Parsi is the legal owner of the catering, and not $GIGL, and the money flows to him as a private company, not $GIGL, but he's using $GIGL resources to promote the catering, then that's a problem. That can account for the name change but this remains to be resolved. There should be a separate line item in the $GIGL financials for income from the catering because it is a separate legal entity. But the shares should be owned by the parent company $GIGL, not Parsi. We'd have to see the start up docs for the catering company to see if it states that $GIGL owns the shares of the private catering company. That leads to how the taxes are reported and paid. A private, sole member business entity cash will flow through to Parsi's federal tax returns if he doesn't state that $GIGL owns it.
There's tons of evidence with $GIGL for the incompetence and self-serving actions by Parsi and Gay. Again, criminal intent vs. being a bad decision maker is the issue. All the rest is just a company run by shady characters. I don't have the answers to the legal issues here.
Make no mistake, Gay is not blameless here. So many of you want to give him a pass and think changing his job title actually means something here. It doesn't. But I get why people hope it does.
By the very nature of penny stocks, they attract founders who couldn't break into the mainstream business landscape to start up their venture. I would say there are more shady and incompetent CEO/founders in penny stocks. Not that they don't exist with the big board stocks, I'm not saying that at all. Enron, Madoff, Milken...you name it.
But, do you think Parsi could be the CEO of Apple, Amazon, or Facebook? Of course not.
And, it's possible we'll hit 5-10 cents as well.
PR: Gay to lead $GIGL expansion:
"Giggles N' Hugs' business model aligns well with the top trends shaping the restaurant industry," stated Gay. "As an active member of the Company's executive management team, I can put my wealth of industry experience to work as we execute on our plans to expand to 25 locations over the next three years."
"Gay's responsibilities will include designing and implementing processes to support business growth..."
https://globenewswire.com/news-release/2015/02/05/703532/10118520/en/Former-California-Pizza-Kitchen-CFO-Joins-Giggles-N-Hugs-Executive-Team.html
He had one job to do! EXPAND!
Yes, this was from a PR in Feb. 2015. What has Gay done to expand $GIGL since he took this position in 2015?
Nothing. Do you really think anything is different now? In fact, their financial situation is worse now than in 2015. Gay couldn't get it done, with all his CONNECTIONS, in 2015, 2016, 2017, and into 2018.
The fact that he expanded a company before, as everyone is dancing around about, makes it WORSE, not better here because even with a stacked deck of experience and connections he couldn't pull off even one new store in three years.
If Gay was a total rookie, it would make more sense that he couldn't expand. So what you guys think is a beneficial background, I think $GIGL is worse off with. Plus, he didn't have money to expand before and he doesn't now.
NOTHING has changed. One little PR and people are on happy street? Come on, get real.
This has turned into a penny stock shuffle. Shuffling funds, shuffling job titles, shuffling shares, shuffling money, shuffling PRs. Always shuffling!
I am NOT saying this was Parsi's intent from the beginning. It's what happens when an incompetent, selfish person makes a series of very bad mistakes, eliminates good options as a result, and now is in self-preservation mode. Now, he's trying to save himself.
The only play they had was for Parsi to resign completely with zero position within the company and Gay to step back from his private company to work at $GIGL full-time.
But Parsi and Gay blew it. All they did was shift job titles and nothing else. It is crystal clear.
They see a few investors get excited and pat themselves on the back and go back to business as usual. Neither of these guys should get a penny until $GIGL is profitable and let company PROFITS fund their compensation, not the shareholders.
P.S.
Thank you to satomi for your post. I also see my other stickied post was removed. Damn, should I stop posting the truth?
Are you kidding? NOTHING HAS CHANGED!
Parsi read this board, gathered the complaints, and wrote a PR based on that. Isn't it obvious? Let's walk through this...
1) His obscene salary? He says he's lowering his base salary. There are two issues with that statement. a) Look at the wording...."base salary" but he doesn't say how much, and b) lowering his base salary doesn't mean he's lowering his overall compensation. So he could lower his monthly salary but still get shares each month (dilution) or move the salary owed him forward for future payment. He talks about monthly burn rate so he may not get paid monthly, but at a future date.
2) Announced that Gay is taking over as CEO but very clearly stated he is still working at his other company. No real start up company uses a part-time CEO to expand. This is just ridiculous to expect this to work. So Parsi is still doing the main work. The job title change was just a shuffling of titles, with the responsibilities the same as before.
3) There is NO money left from the offering to expand after bills are paid. $GIGL needs to pay off the landlord and whatever other bills due before they do anything. That leaves not enough to open even one store. Let's not kid ourselves.
They will have to raise money for expansion. This offering just keeps the lights on for a handful of months but they are going to be right back where there are now with bills past due and still no money for expansion.
4) Gay was tasked with one job in Feb. 2015...expand $GIGL. So, in three years he did nothing (expansion wise) and he has no money now to expand, so the situation is the same. $GIGL had no money then or now.
It's irrelevant what Gay did with other companies before he "joined" $GIGL because the prior company financial circumstances were different. Obviously they were well managed and well funded. $GIGL is NOT either.
5) Select a Board of Directors? For what? Think this through. They already have a team of people who do nothing but get compensated, why add more? They only have two stores, barely hanging on. They appoint a part-time CEO and now they want to add a board? This is stupidity at the worst level. What is this board going to do? $GIGL doesn't have enough to pay Parsi or Gay and they are going to add a needless board? There is no money to expand so it doesn't matter how much they PR it, right now with what they raised, it's not happening.
These moves aren't criminal, but they are extreme INCOMPETENCE! I didn't think this could get worse, but with this PR, it sure did.
Wake up folks. There are no good options left unless they sell the company or take on a majority owner as partner. No one investing in this company would want the same people who drove it into the ground to lead the turn around. They had their chance to rescue the company and failed so...bye bye.
But I tell you from experience, the more they wait, the more they fumble, the lower the little value left of the company becomes.
There's not much value in a company that's losing money and in debt. The company has NOT proven it can work. Yelp reviews, birthday parties, celebrities and any of that is NOT PROOF that this concept works because it's not profitable.
Profitability is the only metric of success for a for profit business. This metric is not debatable.
Rough times ahead.
Go through the notes of my last few posts on the catering issue and you can search for the answers you're looking for. That's why I included my notes, so other people can search, verify, confirm, and follow the money.
I gave more than enough to run with. Have fun! LOL
BTW, I could not find a company registered to "Fresh N Healthy Catering" in the business entity search as a corporation or LLC. Now, to get a bank account in that name for customers to pay in that name he could get a DBA under Fresh N Healthy but it would legally be under the GNH Cc, Inc. business entity. I'd have to see all the docs to be able to determine that.
Companies often have a main name for their legal business entity and then a DBA for say, different divisions but still under the umbrella of the main business entity.
Anyway, feel free to search the filings like I did, search the California and Nevada Secretary of State business entity websites, follow GNH Cc, Inc., Fresh and Healthy/Catering as keywords, etc.
More DD on catering.
Okay, another step in the trail of the catering business. When I searched for "GNH Cc, Inc." I found a $GIGL 10-K with the following. Keep in mind that GNH Cc Inc. has been listed as one of the two catering entities.
GNH Cc. Inc. is listed under "restaurant operations" which one could say catering could fall under (both sit in vs. catering/outside delivery of food) but if so, it's not a good way to word it. The catering should be identified separately since there is an active private legal entity for catering. Maybe one of the newer filings has it structured better.
https://www.sec.gov/Archives/edgar/data/1381435/000149315215001907/form10q.htm
<<<<NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Principles of consolidation
At March 29, 2015 the consolidated financial statements include the accounts of Giggles N’ Hugs, Inc., GNH CC, Inc. for restaurant operations of Giggles N’ Hugs in Westfield Mall in Century City, California, GNH Topanga, Inc. for restaurant operations in Westfield Topanga Shopping Center in Woodland Hills, California, and Glendale Giggles N’ Hugs, Inc. for restaurant operations in Glendale Galleria in Glendale, California. At March 30, 2014, consolidated financial statements include the accounts of Giggles N’ Hugs, Inc. GNH CC, Inc. for restaurant operations of Giggles N’ Hugs in Westfield Mall in Century City, California, GNH Topanga, Inc. for restaurant operations in Westfield Topanga Shopping Center in Woodland Hills, California. All significant intercompany balances and transactions have been eliminated. Giggles N’ Hugs, Inc., GNH, Inc., GNH Topanga, Inc., and Glendale Giggles N’ Hugs, Inc. will be collectively referred herein to as the “Company”.>>>>
So, if (and I do mean "if") this GNH Cc, Inc. represents the catering in this filing, then this filing indicates the income from catering is flowed through to the main public company $GIGL in 2015 (which is more legit). (I haven't gotten to Q2 2015 to present yet...any takers? LOL).
But this is unclear from what I've found.
Items that need to be clarified:
1) how the funds from catering are being booked/reported to the IRS?
2) this booking/reporting path affects how the taxes are paid (flowed through to Parsi personally or added to $GIGL).
3) if there's any tax delinquencies and if so, which entity is it that is delinquent?
Corporate Filings for Gnh Cc, Inc.
California Secretary of State
Filing Type: Statement & Designation By Foreign Corporation
Status: Active
State: California
Foreign State: Nevada
State ID: 03505125
Date Filed: Tuesday, August 28, 2012
Registered Agent Joey Parsi
GNH Cc, Inc.
Number: C3505125 | Type: Foreign Stock (Nevada)
Company is located at 10250 Santa Monica Blvd #155 Los Angeles CA 90067
GNH Cc, Inc. status is Active
Giggles Catering…Here you go!
Did someone post this info already? This is what I found so far.
As I suspected, Parsi carved out the Giggles catering business as a separate private legal business entity.
First off, forming a separate business entity for the catering, under this business structure, is standard operating procedure for risk management reasons, so he made the right move separating the catering. But there is no connection between the private catering company and the public parent company Giggles N Hugs. At least that I could find. I had to stop because I have to go so if anyone else finds something different, feel free to share.
Secondly, there are two legal entities which have been registered for the catering in the past:
1) GNH Catering (Dissolved California March 2016)
2) GNH Cc Inc. listed as still active in California, but dissolved in Nevada in Sept. 2016.
Again, these entities are in Parsi's name, not Giggles N Hugs, which means Parsi owns it. Every document I read for the catering for these two entities lists Parsi in all the executive etc. positions.
So unless Parsi gives/sells the private catering company to the public Giggles N Hugs company, this separate company will remain with Parsi from the documents I’ve seen, the money has been going directly into his pocket because it’s in his name.
I didn’t see a current legal registration for GNH Cc, Inc. Maybe someone else can pick up the ball and search for it.
Below are my notes. Pull on these threads to see what you find!
Business entities graph:
https://www.corporationwiki.com/California/Los-Angeles/joey-parsi/46963780.aspx
*************************
https://www.corporationwiki.com/California/San-Diego/gnh-cc-inc/108126903.aspx
GNH Catering:
https://businesssearch.sos.ca.gov/Document/RetrievePDF
GNH Catering Dissovled March 2016
https://businesssearch.sos.ca.gov/Document/RetrievePDF
Certificate of Surrender Oct. 2016 GNH CC, Inc. C3505125 GNH CC, INC.
https://businesssearch.sos.ca.gov/Document/RetrievePDF
http://www.mergent.com/docs/product-sheets/giggles-n-hugs-inc-10-17-2017.pdf?sfvrsn=0
Companies for Joey Parsi
Name Status Incorporated Key People Role
Giggles N' Hugs, Inc.
Active 2004 3 President
Glendale Giggles N Hugs, Inc.
Active 2013 1 President
Gnh Cc, Inc.
Active 2010 1 President
Gnh Topanga, Inc.
Inactive 2012 1 President
Gnh Catering
Inactive 2015 1 President
Giggles 'n' Hugs, LLC
Inactive 2006 1 Member
https://www.corporationwiki.com/California/Los-Angeles/joey-parsi/46963780.aspx
Joey Parsi Overview
Joey Parsi has been associated with six companies, according to public records. The companies were formed over a nine year period with the most recent being incorporated two years ago in August of 2015. Three of the companies are still active while the remaining three are now listed as inactive.
Background Report for Joey Parsi
Joey Parsi
Glendale Giggles N Hugs, Inc.
Gnh Cc, Inc.
Giggles N' Hugs, Inc.
Giggles 'n' Hugs, LLC
Gnh Topanga, Inc.
Gnh Catering
Gisela Stoecklein
Tracie Hadama
Companies for Joey Parsi
Name Status Incorporated Key People Role
Giggles N' Hugs, Inc.
Active 2004 3 President
Glendale Giggles N Hugs, Inc.
Active 2013 1 President
Gnh Cc, Inc.
Active 2010 1 President
Gnh Topanga, Inc.
Inactive 2012 1 President
Gnh Catering
Inactive 2015 1 President
Giggles 'n' Hugs, LLC
Inactive 2006 1 Member
Connections for Joey Parsi
A connection is made when two people are officers, directors, or otherwise associated with the same company. Joey has two known connections .
1
Tracie Hadama
1
Gisela Stoecklein
https://www.corporationwiki.com/California/San-Diego/gnh-cc-inc/108126903.aspx
Known Addresses for Gnh Cc, Inc.
401 W A St San Diego, CA 9210110250 Santa Monica Blvd Los Angeles, CA 90067
Known Addresses for Joey Parsi
1000 N Green Valley Pkwy Henderson, NV 89074
10250 Santa Monica Blvd Los Angeles, CA 90067
11701 Wilshire Blvd Los Angeles, CA 9002516760 Encino Hills Dr Encino, CA 91436
1875 S Beverly Glen Blvd Los Angeles, CA 90025
1560 Roscomare Rd Los Angeles, CA 90077
3222 Glendale Galleria Glendale, CA 912101560 Roscomare Ed Los Angeles, CA 90077
**************END******************
Gator, one of my friends/partners is a F & B guy and has co-founded a restaurant in ATL (among other businesses). He was looking for a project and had we pursued this one, he was looking to be involved. He's really connected in ATL.
I no longer have a membership on this site so I can't PM but you can PM me an email address if you'd like to chat about this, I can put you in touch to see if he's still looking or some people who might help?
Just a thought....
Not even that. They have to deduct expenses/fees. That number is gross, not net to $GIGL.
Shareholders have spoken and it's not good at all!
It is right where I said it would be from the start. Not enough to keep the lights on and open one new store. Is an "I told ya so" appropriate here? LOL
So, it's keep the lights on and pay Parsi and Gay, forget expansion until a new plan develops.
I'm thinking he needs to sell it.
(Hmmm....)
<<<On April 19, 2018, Giggles N’Hugs Inc. closed its public rights offering. The Company sold 19,791,819 units, consisting of 19,791,819 shares of common stock and warrants to purchase 13,854,274 shares of common stock, for gross proceeds, before expenses and dealer-manager fees, of $593,754.58.>>>
True again. If it was a trendy marijuana or crypto stock, who knows how high it would go!?!?!
True. We all have seen companies without revenues or assets spike up to $1-5 just on hot air and a little feeding frenzy on social media.
$PGAS is doing real business with real products/services.
"Oil Stocks Jump as Global Crude Oil Rally Gains Steam"
https://www.thestreet.com/markets/oil-stocks-jump-as-global-crude-rally-gains-steam-14561239
Martin Baccardax
Apr 19, 2018 7:55 AM EDT
"Oil Stocks Jump as Global Crude Oil Rally Gains Steam"
Global oil prices have gained nearly 15% since March as investors count the cost of continue OPEC production cuts and the threat of supply disruption from Iran linked to nuclear treaty sanctions, but most energy-related stocks have yet to follow suit.
European energy stocks bumped higher, while U.S. oil majors looked set to pace gainers on Wall Street Thursday as global surged past 2014 highs amid an extended rally in global commodity prices.
Chevron Corp (CVX - Get Report) shares were marked 0.31% higher in pre-market trading, indicating an opening bell price of $124.20 each, while rival Exxon Mobil Corp. (XOM - Get Report) edged 0.11% ahead of its Wednesday close to change hands at a one-month high of $79.31. The moves followed solid gains of 0.42% for France's Total SA (TOT - Get Report) and 0.34% for Royal Dutch Shell (RDS.B - Get Report) as crude hit a two-and-a-half year high Thursday amid reports that Saudi Arabia, the world's biggest producer, would be comfortable with $100 oil and push for no changes in OPEC's current production ahead of a key meeting in Jedda later this week.
The overnight spike has extended an impressive run for global crude, taking prices to the highest levels since late 2014 after Reuters reported that Saudi Arabia would be comfortable with prices trading in a range of $80 to $100 over the near term as it plots the listing of its state-owned producer Saudi Aramco in early 2019. It's also unlikely to ask for any changes in the current pact between OPEC members -- and non-cartel allies such as Russia -- which is taking 1.8 million barrels of crude from the market each day until at least the end of the year.
Brent crude contracts for June delivery, the global benchmark, were marked 0.6% higher from their Wednesday close at $73.91 per barrel, while WTI contracts for the same month, which are more closely tied to U.S. gas prices, were seen 0.4% higher at $68.75 after topping $69 earlier in the session.
Curiously, even with amid crude's relentless 15% gains over the past six week, U.S. energy stocks haven't really responded: the S&P Oil & Gas Exploration & Production Select Industry Index is only up 4.875% so far this year, while the broader S&P 500 energy index has gained just 1.9%.
Europe's Stoxx 600 Oil & Gas index has fare reasonably well, rising 3.87% so far this year against a 1.9% decline for the broader all-equity benchmark.
But that may be set to change as the ongoing march higher for oil is good news for many players in the space, TheStreet recently reported, and key beneficiaries could include Action Alerts PLUS holding Schlumberger (SLB - Get Report) , Halliburton (HAL - Get Report) , Weatherford (WFT - Get Report) , and Baker Huges (BHGE)
"After a mass exodus from the space in recent years amid the worst commodity downturn in decades, investors thinking about energy stocks at all is a good sign," TheStreet's Terrarosa wrote last week, noting that "analysts generally agree that the industry's fundamentals are much better than the prices of energy stocks would seem to imply.
"We believe the energy sector generally and oil service group specifically is experiencing one of the most significant mismatches in equity market performance relative to field-level fundamentals in the last several years (and perhaps as many as 15 years)," Seaport Global Securities analysts wrote on April 12.
Further crude price support could come from the impact of potential U.S. sanctions on Iran, which President Donald Trump may invoke if he refuses to certify the dormant nuclear energy deal with Tehran by the May 18 deadline. Should the President slap restrictions on Iran's crude exports, a further 500,000 barrels a day could be removed from the market, analysts have estimated.
Trump waived fresh sanctions on Iran in January, but insisted that was only to "secure our European allies' agreement to fix the terrible flaws of the Iran nuclear deal.
"This is a last chance," he insisted at the time. "In the absence of such an agreement, the United States will not again waive sanctions in order to stay in the Iran nuclear deal. And if at any time I judge that such an agreement is not within reach, I will withdraw from the deal immediately."
"Petrogress gets 65% of this = $234,000,000 in revenue."
Looking forward to the deal next month!
Can you show the data that you're using to support there is a coordinated person or group accumulating shares here?
Or are you just guessing based on volume (which isn't proof).
I did ask this before but I didn't see an answer. Maybe I missed it?
Where you are stuck in your daily question is no one sees anything here as a slam dunk, exponential increase in pps like you do. Possible? Sure, slam dunk...not at all. This is a penny stock.
That is why no one at this stage, with the resources to buy, have done so lately.
No one. Because it's not the deal you think it is. Yes, that is what I'm telling you (before you even type...."you mean to tell me that if a+b then c+d=pps to $0.10 is a slam dunk").
The two entities who have come forward were not able to negotiate a deal with Parsi. So, those opportunities have passed.
I can tell you it's not a slam dunk as well. Random volume doesn't mean anything coordinated is happening unless you have someone who announced they are doing so, which you have not supplied.
Parsi didn't start $GIGL wanting to be in the position they are in now. But he is backed into a corner by way of consequences of their mistakes with few options left and getting more scarce as days go by.
That's why you cannot fathom the current state of the business. Parsi is pivoting what he's doing. He has no choice.
Stop thinking that anything with this company is a slam dunk and you may get unstuck from that thought process. There's a reason that after asking that question 100 times that you don't have an answer you like. You've ignored answers that don't fit your narrative.
Change your narrative as the landscape changes, that's what good investors do.
Love those numbers!
Looking forward to hearing the details next month!
Strategic partnerships are not fluff. In fact, just the opposite.
Here's an article explaining their advantages so maybe you understand the concept better. Good luck!
"4 Tips to Go Further, Faster with Strategic Partnerships"
https://www.entrepreneur.com/article/233450
How is that "fake" news?
LTG, yes, I intentionally don't give weight to coincidences. We try to control for extraneous events, not validate them. :)
You could go on for days trying to connect businesses in the kid's space and/or health food space in L.A. to $GIGL and you won't be any closer than you were on day one, until we hear from the company.
I understand it though. People need something to feel good about here so they pull threads hoping something comes of it in the future. Law of numbers, guess enough times, it increases your chances of guessing something correctly. Kind of like roulette eh?
To each his own. It's all good.
Moving along...
As to the timeline of events in my post LTG, yeah, I'm sure you could switch a couple of these points around in my post, it was just a quick post, summarizing off the top of my head, nothing to be carved in stone.
You knew where I was going with the post. :)
The $GIGL drama unfolds....
1) Parsi sees a shareholder sentiment going against him.
2) He does nothing about it, doesn't care. $GIGL is his baby. No one is taking it away from him.
3) He needs to expand but he can't raise money from traditional business sources, turns down private placement, at least two outside financing options, and the company isn't profitable to fund expanding itself.
4) Parsi doesn't want to use toxic financing AGAIN.
5) He's backed into a corner. He sets up an offering to shareholders but knows no one will buy in with him as CEO.
6) Parsi tells one of his rented names, Gay, that they will announce Gay as the new CEO (to improve shareholder sentiment towards the offering).
7) Parsi tells Gay that Gay can continue to do nothing for $GIGL and he can keep his gig with his company (they put it in the filings) which results in Gay remaining in a part-time commitment to $GIGL.
8) Parsi tells Gay that Parsi will keep doing the work of the CEO, but he'll stay under the radar and give the appearance that Gay is really doing the work of the CEO to keep shareholders at bay.
9) The offering doesn't raise enough money to cover a) future operating costs of the current $GIGL stores AND b) fund expansion.
10) Parsi uses the offering funds to keep the lights on and for him and Gay to keep siphoning their salaries/compensation while $GIGL loses money.
11) There are no strategic investors to jump in and save the day, no pair or group "accumulating" blocks of shares, and the superstar management team (which are just a bunch of names Parsi rented but do nothing) aren't pitching in anything except for Parsi...maybe, and if so, we don't know how much.
12) Parsi scrambles to save the company....
(To be continued...)