Since you asked...LOL. (BTW, great post!) :)
"Let's go through some basic scenarios, shall we ?"
1) Assuming Reed's is in for $1M backstop investment...
Yes, Reed's jumping in is possible and there is some reason for them to be involved at this stage.
2) Maybe Jillian even invests some of her own money ?
No, that's not happening. We've beaten that topic to death.
3) Who would want to participate if the offering prices at a deep discount to current PPS ? If you stop and think, you would be destroying the o/s and float!
True.
4) Now, if it prices at say $1.75 per unit, what is your reaction ? Probably befuddled and wondering WHO would ever participate with those high prices ? Reaction?
Thanks, but no thanks.
5) *** Thing is - you will not know if ANYONE did participate until end of March. What IF $2.5M is miraculously raised and Joey immediately announces 3 new stores opening come early April ?
Any funds raised or deals signed in the interim would have to have an 8-K filed. They can't legally hide that information.
As to the $2.5 million "miraculously" raised? Well, A miracle would nice, but I don't know many investors who include miracles as one of their investing variables. Again, any deals would have to be filed.
Plus, there is no way three stores can be opened by April. Two months isn't enough time for pre-construction stages to be completed (site selection, permits, blueprints, etc.) let alone building complete stores as well. We have to assume that since no deals have been announced/filed, that they would be starting from scratch for the store construction and again, two months isn't enough time.
6) Don't forget, this entire offering could still be terminated as well.
True, but it seems like Parsi is dead set on this avenue.
7) No matter how it goes, it should not have come to this.
Very, very true. He had better options than this.
8) There is absolutely no question that our CEO is in way over his head/skill set.
Very true again.
9) One problem, though - the damn concept works and demand seems to be increasing per current reviews.
You are correct again. But a good concept without execution means zero. It means what we have here, poor execution, an unprofitable company, and dwindling options until the lights are turned off.
10) For me all penny stocks are a gamble but if this one hits, the upside would be HUGE with such a locked float. I doubt people are going to sell for a few pennies of gain on this one.
True again!
You raise some great points and as a fellow shareholder, I hope Parsi is able to work out something with someone. I just don't get why he's taking the most difficult and costly path to follow.
And...I'm not going to try and guess why because we won't be any closer to knowing the truth until it happens.
I don't look for logic where there is none.
Stock manipulation according to the SEC. "Making false or misleading statements about a company."
