Giggles N Hugs Inc (OTCMKTS:GIGL) Bottoming Out As Trading Volumes Surge

Giggles N Hugs Inc (OTCMKTS:GIGL) is showing signs of breaking out, after trading in a tight range for five months. The stock has spiked, and trading volumes increased, an indication of easing selling pressure.While the stock is yet to live up to expectations according to our previous analysis, we remain optimistic about its long-term prospects, taking into consideration recent developments that position the company on a growth trajectory. GIGL Daily ChartA close look at the chart above, it is clear that the stock has been trading in an uptrend in recent weeks even though it is still engulfed in a strong bearish trend. A close above the $0.05 mark should affirm the bullish thesis, which has been gaining momentum in recent weeks.However, there is no denying that the stock remains susceptible to further losses should it drop below the $0. 02 mark.Before we look at the factors likely to trigger price swings in the near future, let us first understand what Giggle N Hugs does in pursuit of growth and shareholder value.What Does Giggle N Hugs DoGiggle N Hugs is an operator of restaurants that offer high-end organic food. The company also offers cutting-edge plays and entertainment for children, which includes magic shows concerts, Puppet shows, and face painting.The company’s family-theme restaurants feature kid size castles as well as giant climbers and a selection of toys. Giggle N Hugs targets parents planning to ensure their kids are in a safe and fun-filled environment while on an outing.Expansion AmbitionsGiggle N Hug's expansion ambitions is one of the reasons why we remain upbeat about its long-term and growth prospects. Early last year, the company inked a partnership with fitness expert and renowned life coach, Jillian Michaels, with the aim of creating an international brand.The partnership marked the first step in the company’s push to provide parents with a space that offers delicious food as well as one of a kind entertainment

“Having Jillian as our first brand ambassador, along with her and Giancarlo's vast business acumen, will position Giggles N' Hugs for great success in the weeks, months and years to come. Their focus on healthy eating and an active lifestyle are a natural fit for our brand as we aggressively work to increase our footprint with new locations in numerous markets and to explore the brand presence through consumer product goods,” said CEO Joey Parsi.

Capital RaiseIn a bid to raise funds to support the expansion drive, Giggle N Hugs recently filed with the Securities and Exchange Commission a Rights Offering. Under the proposed Rights Offering, the company intends to distribute to shareholders non-transferable subscription rights.Each unit on offer consists of one share of GIGL common stock, and 0.70 of a five-year warrant. The company intends to use net proceeds from the offering for general corporate purposes as well as for the repayment of certain outstanding indebtedness. Part of the funds will also be used to fund new location expansion as the company moves to expand its footprint.In addition, Giggle N Hugs plans to carry out a number of acquisitions that it hopes will help reinvigorate its growth prospects.Bitcoin Payment Support Fast forward, the stock is receiving support in the market on Giggle N Hugs announcing support for Bitcoin payments. The integration seeks to take care of customers who don't have cash in their hands but would wish to pay for goods using the virtual currency.The family-friendly restaurant operator has since partnered with BitPay, the world leader in Bitcoin payment, to handle bitcoin transactions. While the cryptocurrency space has been shrouded with a lot of concerns and mysteries, Giggle N Hugs remains well protected from exchange rate volatility.Unlike credit cards transactions, Giggle N Hugs stands to enjoy low transaction costs, with bitcoin payments. Credit cards normally charge 3% in processing fees for every transaction. BitPay, on the other hand, charges a 1% flat settlement charge on bitcoin transactions.BitPay partnership will allow the company to receive payments in any amount from anywhere in the world.By accepting bitcoin transactions, Giggle N Hugs should be able to stay ahead of the curve when it comes to the utilization of technology that meets customers’ demands. It should also allow the company to gain a head start as cryptocurrencies become mainstream.What's Next For Giggle N Hugs?There is no doubt that Giggle N Hugs has underperformed the industry over the past one year. A spike from lows and an increase in trading volume is an indication of strengthening investor’s confidence in the stock.Investors should continue to take note of the company’s acquisition and global expansion strategy expected to have a significant impact on the company’s growth metrics. From current levels, it appears the stock is well positioned to continue powering high on easing selling pressure.We will be updating our subscribers as soon as we know more. For the latest updates on GIGL, sign up below!Disclosure: We have no position in GIGL and have not been compensated for this article.