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And now, the finder’s fee…

Last month, I noted how a small company called Command Security (CMMD.OB) had managed to land a big fish like Rudy Giuliani. Granted, Command was paying Giuliani’s company a lot of money — $175K a month plus expenses.

Well, it turns out there’s more to this story, judging by this amended 8-K filed yesterday. It seems that Command didn’t just call up the good folks at Giuliani Security and Safety and offer them lots of money. First, as the 8-K discloses, they had to pay a finders fee to a private company called Jericho State Capital, which made the introduction. Of course, Jericho didn’t do this out of the goodness of their heart. Money was involved, specifically a warrant to purchase 350,000 shares of Command stock at $2 a share that vested immediately. If the agreement with Giuliani is extended another 12 months, Jericho gets another 150,000 warrants @ $2 a share. But that still wasn’t enough of a payment for Jericho: if the agreement with Giuliani is extended, Jericho will receive $90,000 a month for “ongoing consulting and advisory services” for as many as 31 months.

Not bad for an introduction. But it certainly makes one wonder whether the huge amounts of money Command is paying are worth it.