Replies to post #22154 on Giggles N'''''''''''''''' Hugs Inc. (fka GIGL)

[DeltaWarrior]

You didn't mention the paid-in Capital. Thats the key chuck.

http://www.investopedia.com/terms/p/paidincapital.asp

[kickask]

Good summary and spot on. I would consider it a good thing since the company did not have to pay cash for her services and she wouldn't have accepted them if she didn't think she would be able to capitalize on them and as you said, the company benefits with cash if/when she exercises. It would be interesting to know what the price was when she was given these. They may have been in the money at the time.

[llh222]

Thank you for this very good explanation. It is about what I thought it was but this from the PR says there may be more

"today announced a multi-faceted partnership with Jillian Michaels, the foremost fitness expert and renowned life coach. Through the partnership, Michaels will become one of the largest shareholders in the company and the global brand ambassador, bringing her wealth of experience in building world-wide businesses to the California-based family restaurant and children’s play space."

I also doubt that GIGL received any cash at this time, but will if she exercises the warrants. Also other conditions probably apply.

GLTA

LLH

[DeltaWarrior]

So at the end of your message, you say she has to buy the Warrants. At the beginning of your message, you say they were "granted for service" (you underlined it, so that means it's implied, right?).

"Granted for services" does NOT equate to FREE SHARES is my point.

5 mil x .1 is $500k. 150k x .2 is $30k. That is where the entire fair value of $531k is from and not just the bulk of it.

Which again leads me back to the point. A high profile celebrity has (let me get my semantics right) "committed" to investing over $500k of her hard earned money into $GIGL, so why wouldn't I?

$GIGLn'