Tonner One World Holdings Inc (TONR)

[Odessa99]

Here is what I think may be more material than all of the fluffy stuff.
One of the many notes listed as outstanding on the 8/14/14 financial statement filing is convertible debenture #41, with the following associated details:

Date: 8/1/13
Term: 12 months, 14%
Original Principal: $150,000
Unpaid Principal balance: $146,250
Conversion Price: .0025

With a conversion price of a quarter of a penny (as is stated in the 8/14/14 filing), more than 58,000,000 shares would be required to satisfy that one debenture (plus more, due to add'l accrued interest). Considering that for the past six months, the total authorized common shares was 50,000,000, that one conversion would more than double all of those previous shares.

It would seem logical that convertible debentures of that type necessitated the increase in authorized (that just took place) from 50 million to 500 million.

But worse yet, the cost basis for those additional 58,000,000 common shares will be .0025, and we are still trading (for the moment) at above a penny. That would mean that the holder of those shares would be able to begin selling shares at the current bid, and continue the selling all the way until the share price sunk to .0025, and every sell would be at a profit.

If there was not enough buying interest to absorb those sells, a prudent seller could then wait for any sort of increase from that price level to resume the selling (again, at a profit).

If doll sales were robust (and at a reasonable profit margin), OWOO could use cash to satisfy notes such as #41 I've detailed above. But logic tells me that if doll sales were currently robust, and profitable, mgmt would be proud to announce that very positive development, and would not hesitate in doing so.

So with all things considered, the very recent 10x increase in authorized common shares, combined with the unfavorable conversion terms of some of the debentures, indicates to me that we will see some significant share selling pressure in the near future. And that usually creates a downward slide in the share price. That is what I expect.

As always, simply my opinion.

OWOO