Please review/critique my Theory...go ahead, plea
Post# of 3935
- Jill 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 .02 cents = outlay of $144K. Under a 5% holder/investor doesn't report 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
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)
She spends $144K, $4.5M and maybe $1M on build out costs of 4 new locations = $5,644,000. Call it OUTFLOWS. She gets (with a PPS of ONLY 20 cents now)
32M x .20 = $6.4M plus "in the money warrants" worth another $500k = $6.9M. Call it INFLOWS. Call it profit of $1.3M 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 ?
An easy money-maker for both... WHY ? Because shareprice will 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.
So beat this theory up and tell me why a deal between Jill M. and Joey would NOT be a Win Win ? Thanks