Three possibilities:
1) Parsi learned his lesson about the worthlessness of non-bonding LOIs.
2) Gay truly is in charge and isn't just a figurehead, and has Parsi on a gag order.
Both of these are unlikely. Gay is CEO in name only, as long as he's also running a consulting firm he's a part-time employee. I don't feel comfortable investing in a company with a part-time CEO. I also don't like that the VEO is joining the board...there has to be separation from a BoD and management.
3) They aren't confident that the offering will be successful, which I think is most likely.
I also don't think this offering will get us more than one or two locations so the overall impact when you factor in dilution will be negligible to the share price. Under Gay, I expect to see a lot of franchises.
If they get the money I do think Parsi wil open a new location, but I don't think he gets the red carpet treatment. But that puts us right back to square one. That new location may bring in $200-$300k, but GIGL will be in need of more cash. This is not the only offering we will see...
