Tonner One World Holdings Inc (TONR)

[Voices of Reason]

Regarding the A/S 500 million shares (ignore the reverse split for just a moment)....put that amount in context from less than a year ago these comments:

Mr. Daniel: I'll give you some real numbers, Mike. In order to raise $10,000 dollars based on a stock price that's sub-penny, you're talking about upwards of one million shares, or more, in order to get that financing. But, if your stock is trading at $1 a share, you're only talking about 10,000 shares going out in the marketplace. So, the bottom line is that 2013 was our focus on building, and establishing, and doing what we had to do to get to the point where we could do better. Now that we've achieved so many things, it's time to move on to more optimal financing; financing that will not be as diluted, it will not put as many shares in the marketplace, and cleaning up our share structure, bottom line, in order to address the 1.5 billion shares that we have authorized out there, the 800 million shares that are outstanding. And all of these are a part of our growth strategy, and we'll be implementing those steps in the very near future, and just building this business and moving on. But now it's time to attract and to work with financing that's much more favorable to the company, and we're in the process of doing that, even as I speak now.


Mr. Daniel: Yeah. Well, the strategy of the reverse split is, in order to attract the kind of financing that is non-diluted, you have to get your stock price out of the dilution zone, okay? And that's bottom line. And like that example I used earlier, with the $10,000, you have to get your stock price to a point where, first of all, there's value behind that. Because a lot of companies do a reverse split, and it's just kind of a wash, rinse, and repeat cycle, where, you know, they do the reverse and then they keep doing the same diluting of the financing in order to, you know, get money for whatever purposes; building a business, or to pay employees, or pay executives, whatever. So, that's not the right approach. What you do, is that you do the reverse and then you bring value. The value that we're going to be bringing behind, the new stock price will be, first of all, overseas distribution; new distribution deals, sales numbers, okay? New media coverage, new promotional efforts; so, things that create momentum. Because a reverse split that's done and there's no momentum to move the new stock price forward, you're just wasting your time, okay? The other thing is, is that when it comes to dealing with the types of investors and investment firms that we need to get, the reverse split is necessary because 1.5 billion shares authorized, 800 million shares outstanding, that's just not the most attractive picture to the type of investors that can invest capital that tends not to be heavily dilutive, okay? But the only way to do that is you have to reverse those shares out, but also what the company will be doing is lowering the authorized shares from 1.5 billion down to 50 million, okay? And so, that changes the landscape completely, and it gives a much better presentation, it paints a much better picture and it gives a share structure that will make investors feel very comfortable with the fact that there's not a lot of dilution going to be happening, and there's not a lot of shares out there in the marketplace. I believe the number of outstanding shares will be just over 1 million shares in the marketplace. And that's exactly where you want to be, with a very, very tight flowed, and not a lot of outstanding shares. So, the reverse split is just a decision that was made, based on the dynamics of what the company is going to need to do to finance its operations, finance its production, finance the marketing, finance the management team; all of these things going in the near future. So, we're very comfortable with the decision, and we just want our shareholders to just understand that every decision that is being made is being made in the best interest of the company, and at this time the reverse split is exactly the thing we need to do, and it's the perfect part of the solution for the share price issue.


http://www.sec.gov/Archives/edgar/data/1017616/000144586613001444/ex991.htm