You're missing the point, Frank.
Nobody is going to invest $200k, let alone $2M, in this company. There was a time when finding cheap money would have been possible but that ship sailed a long time ago.
Why wouldn't anyone invest $2M? Because the terms Parsi is proposing are garbage. Someone could take $2M, open up just as many stores as Parsi has opened, in better cities with more rain or whatever, and keep 100% of the profit.
Nobody is going to share their piece of the pie with Parsi. He brings nothing of value whatsoever. He's already proven that he has little experience with marketing/crowdfunding, he's shown his inexperience in understanding the intricacies of corporate financing when he admitted the mistake of taking toxic money from Hudson Bay or whoever it was, etc.
Celebrities don't come to Giggles n Hugs because they like Joey Parsi, so it's not like he's able to use that to his advantage.
Even his management team, they're all consultants. No loyalty to GIGL -- anyone who wanted to compete against GIGL could find just as experienced a group of consultants.
Name one thing Joey brings to the table that would warrant someone investing rather than going at it alone? His experience is related to his track record, and his track record is crap. Invested $9M+ over the past ten years, has only two stores open, and the company is still operating in the red.
So yeah your fantasy scenario sounds good on paper but Parsi isn't getting that $2M unless he wants to report to more toxic financing in which case the dilution will be a lot more than 200M shares. Not that it matters to Parsi because he's happy collecting a 6 figure salary plus bennies, and he has the ability to buy millions of shares for nothing to combat any dilution.
The ONLY hope this ever has of going back up is if a few chat rooms decide to pump and dump it. That could happen. But is it a good strategy to risk investing money based on the the hope one day it becomes a pump and dump? Probably not.
AI
