Please review/critique my Theory...go ahead, please pick this apart and point out where my flaws are with this, especially any newbies:
- Jill M. has MILLIONS of warrants that are stuck (well below a dime)
- Joey is just STUCK period - cannot be trusted and needs cash
All Jill has to do is slowly accumulate just under 5% of the current o/s of 144M shares which is ~7.2M at say .024 cents = outlay of $173K. Under a 5% holder/investor doesn't report their holdings
She approaches Joey and says - I will give you 18 cents a share for 25M of your personal shares if you get the F out of dodge. She pays Joey $4.5M but he still retains 1.3M common shares. Jill now owns the concept, company, and hearts of all investors ! Joey exits stage left
Jill now has 32M GIGL shares and 5M warrants at a dime (follow me) in this scenario. She got those warrants when she signed on as brand ambassador as she loves the concept and the kiddos !
Price shoots up but instead of hitting 30 cents (new 52 week highs)...it somehow doesn't - it only goes to 20 cents...guess who would STILL make money in this scenario? Yes folks Jill would. (Joey still has 1.3M shares too don't forget)
She spends $173K, $4.5M and maybe $1.1M on build out costs of 4 new locations = $5,773,000. Call it OUTFLOWS. She gets (with a PPS of ONLY 20 cents now)
32M shares x .20 = $6.4M plus "in the money warrants" worth another $500k = $6.9M. Call it INFLOWS. Call it PROFIT of at least $1.2+M EASY
If they don't do a deal - she gets ZILCH on the warrants and Joey gets ZILCH from 26.3M worthless shares. What am I missing here as both are stuck unless something is done ?
An easy money-maker for both... WHY ? Because shareprice will definitely rise with new blood, no dilution, and actual expansion !!! Jill also gets free publicity and can cross sell her coffee and other products etc. Joey cancels the rights offering and walks away a multi-millionaire instead of only receiving 8 years worth of a $300k salary = $2.4M plus $110k in June stock sale proceeds LESS $2M that he put into it of his own money = $510,000.
That article that came out today actually makes this scenario even more plausible because it is way oversold.
** Perhaps email Jill or her team these thoughts as I only see it being a WIN WIN. First, though - pick it apart PLEASE