Hangover Joe's Holding Corp. (fka HJOE)

[trader53]

HJOE Would you have bought this stock ?

HJOE - The HJOE Hangover
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=118040223&txt2find=hjoe


At the End of September,
* the company had a working capital deficiency
of $2.704 million,
* and an accumulated deficit of $6.284 million.

HJOE reported a net loss
of approximately $592,000 for the period,
and relied on debt financing and private placements
of its common stock to fund operations.

Due to a lack of liquidity
--another word for money--
it had defaulted on some of its debt agreements
and a licensing agreement struck with Warner Brothers
for use of promotional materials
having to do with the movie The Hangover.

The sales of convertible notes are particularly troubling.

HJOE is in hock
to nearly every major toxic funder out there,
and to some minor ones as well.

Though most of the individual loans are relatively small,
as of early 2015,
more than $700,000 in convertible notes was outstanding,
and additional financing was needed.

Some, but not nearly all,
of that debt has been converted,
but more has been incurred.



On March 20, 2015,
a new lender,
Joshua Sason's Magna Asset Services, Ltd.,
entered the picture.

In his Schedule 13G,
Sason indicated that he potentially controlled
9.99% of the company's common stock,
and reported that the current shares outstanding
were 1,747,702,984

The outstanding had grown
by a little more than 1.4 billion shares
between the beginning of December
and the end of March.

That is dilution on a staggering scale.

Note that Magna, as a new lender,
hasn't converted his note yet.

His position "consists of Common Stock
that the reporting person has the right to acquire
by way of conversion of promissory note(s).

" Typically, note holders don't convert
until their stock can be issued free trading."



On February 23, 2015
HJOE followed through by amending its articles of incorporation in Colorado to reflect the change.

The gigantic increase in the authorized
was obviously necessary to accommodate conversions.

The raise in authorized capital came just in the nick of time.



On Monday May 11, 2015,
* the company's stock opened at $0.0004 and closed at $0.001;
* on Thursday it hit a heady intraday high of $0.0062
on 532 million shares



In March,
Matt Veal released two letters to his shareholders,
explaining some of the company's problems
and promising brighter days ahead.

In the first, published at Facebook on 9 March,
he succumbed to a temptation that bedevils many penny CEOs:
he decided to take Shorty and "bashers" to task.

He sternly--and inappropriately--warned
that "bashers who try to harm this company with lies
and disinformation we will have our attorneys
monitoring for this and will be swift to take action
in the future.

Also our social media is for our customers
and if someone bashes on our social media
you will be banned.

They have an agenda and they hate that this company
has continued to survive and move forward
with all the efforts they made
to make this not possible."

In the second communication,
from 18 March,
Veal returned to the same theme.

He began by acknowledging that shorting is not illegal, adding, "And Hangover Joes [sic] has seen
[a] considerable amount of shorting recently!"

While it's true that short interest increased
between the end of February and mid-April,
so did the stock's average daily volume.

More importantly--
and something Veal neglected to explain--
the shares outstanding had by that time ballooned
to 1.75 billion.

The 16 million share short interest
reported on 31 March
is insignificant in comparison.

http://www.theotc.today/2015/05/the-hjoe-hangover.html?m=1