We recently touched upon Giggles N Hugs Inc (OTCMKTS:GIGL) here on Street Register following the release of the company’s annual financials, and this week the company provided another update via PR that we wanted to relay to our readers.
For those who may have missed the previous articles on GIGL, a short background on the company. Giggles ‘N Hugs is self-billed as a Family Restaurant & Playspace (à la Chuck E. Cheese’s). But in an attempt to maximize its opportunities, the company has taken measures to employ a specialized outside firm for assistance to go along with in-house efforts.
Giggles N Hugs Inc (OTCMKTS:GIGL) has engaged PacificShore Ventures, a global specialty finance and M&A (Mergers & Acquisitions) firm, to explore potential synergistic acquisition opportunities.
“Those that have followed Giggles N’ Hugs know that we have plans to develop and launch a full line of complementary merchandise under our growing brand. This relationship with PacificShore could help us jump-start this segment of our business,” commented Joey Parsi, CEO. “Acquisition targets that we plan to look at could include food companies, with established distribution, that expedite the launch of our frozen food line of pizzas, pastas, and other kids’ meals in which we infuse healthiness by pureeing vegetables and hiding it in kids favorite meals, similar to what California Pizza Kitchen and Wolfgang Puck have done with their frozen meals that are available at the local supermarket.”
“Because of the generous tenant improvements we are being offered by the biggest mall owners in the country, our focus is and will remain with opening new locations where mall owners pay for most if not all the build out costs, however we could also look at other play spaces that host birthday parties, children’s clothing companies, toy manufacturers, or even other restaurant concepts that could be either synergistic and or easily converted to a Giggles N Hugs location,” Parsi stated. “Our current plan is to have the existing management teams of any acquired company stay in place so that we are not distracted from our priority of growing our footprint.”
The Company is targeting companies which are cash flow positive and have minimum annual revenue of $5 million or more. PacificShore has been tasked with identifying and creating target company profiles, introducing, initiating negotiations, and ultimately facilitating the closing of such potential companies and to introduce traditional banking relationships for the Company to fund the acquisitions.
“We are excited to work with Giggles N’ Hugs and explore opportunities in the M&A world to accelerate their growth. We believe Giggles is in the right position and has the right management to acquire and integrate companies to benefit their shareholders in the short and long term,” Mason Habib, Founder & Managing Partner of PacificShore Ventures, stated.
“If and when we complete an acquisition, we anticipate that it will allow us to expedite our plans to up list to a national exchange as well as being accretive to our top and bottom line numbers,” Parsi stated. “Driving shareholder value will be a key focus as we explore potential acquisition targets with PacificShore. Executed well, this strategy should positively impact our growth prospects in the near-term,” (Source: Globe Newswire)
GIGL has run into difficulty maintaining share value since the huge run it experienced from February to March, but we’re still very interested to follow its story. The company has demonstrated a continued desire to develop its brand further, even after having been voted the #1 kids party place, as well as the #1 pizza in Los Angeles by Nickelodeon, accolades which might cause other companies to become complacent. Follow the GIGL story along with us by signing up to our free newsletter by submitting your email in the box below. We’ll relay any developments on GIGL if anything noteworthy transpires. Subscribe now!
Disclosure: No one at Street Register has been compensated in any way for the publishing of this article, nor do we hold any position in GIGL stock, short or long.