Soupman Inc. (fka SOUPQ)

[jlee3]

What is unfortunate? SOUPQ is now an empty shell, emerged from bankruptcy with a clean balance sheet. SOUPQ shareholders will have their shares replaced with SOUP shares, without the Q.

Gallant Brands (GBI) owns 40% of the O/S shares of SOUP. Now, until GBI comes out with another press release explaining what their plan is for SOUP shareholders, all posts on this board by bulls and bears are based on speculation. However, it's not hard to put together the clues to see the most likely outcome. In Thursday's press release the president of GBI thanked long-term shareholders (us), vendors, suppliers, franchisees, and customers. Would he thank SOUP shareholders if an unfavorable outcome was coming their way? Maybe but unlikely.

As you said, GBI did not buy the SOUP ticker and the empty shell still remains. GBI will want to keep the SOUP ticker and will do so by reverse merging with SOUP. We won't know the exact numbers until the next PR, but let's say they offer SOUP 30% ownership in exchange for the public shell. GBI would end up with 70% + (30% * 0.40) = 82% ownership of the new SOUP while the rest of the long-term shareholders (us) are left with 18%. Our % ownership in the new SOUP will likely be less, but the value of our shares will likely be greater. With 82% ownership, GBI will have the flexibility to offer future investors/partners a sizable amount of equity while maintaining majority ownership.



http://www.prnewswire.com/news-releases/soupman-inc-emerges-from-bankruptcy-300527223.html
"Gallant Brands, Inc. (GBI) was founded with the specific purpose of purchasing Soupman, Inc. assets and operating the company under new management."