OWOO - what they said:
HOUSTON, TX, Mar 21, 2014 — ONE WORLD HOLDINGS, INC. — The One World Doll Project, a subsidiary of One World Holdings, Inc. (OTCQB: OWOO) today announced that it has entered into an agreement pursuant to which a Santa Fe, New Mexico private equity group will invest $500,000 into the company. Today’s announcement represents a significant vote of confidence in The One World Doll Project by this group of preeminent, long-term investors,” said Joanne Melton, One World CEO. “This financing has provided an immediate cash injection on terms more favorable to One World Holdings, thus allowing for systematic reduction and elimination of existing convertible note financing that, upon conversion, could have resulted in the influx of millions of shares into the market,” she added.
OWOO - what they actually did:
From the June 30 Quarterly Report -
New Debentures #47 thru 65 totals $681,532. Of this amount, $401k is convertible into approximately 62.2 million shares. The remaining $280k is convertible at a variable rate - as indicated in my last post, at roughly 32% of current market value - roughly another 42 million shares - round out the total for both to 100 million share conversion rights for discussion purposes.
The old debentures #1-46 stood at $1,000,289 prior to the June financials. The old + new unpaid debentures as of June = $1,658,726. In other words, subtracting the new $681,532 debentures from the total, the unpaid balance for the old debentures stands at $977,194 - a reduction of only $23,095 on the old debentures.
Summarizing - OWOO stated that the $500k financing would be a systematic "reduction and elimination" of debt, but in reality, they only reduced it by $23k while taking on $681k of new debt at much more toxic convertible rates putting another 100 million into the conversion pool.
It should also be noted, that of the $23k reduced, only $4k was from the old debentures - roughly $19k was paid on the new debentures. Let me restate this another way: "The Company stated in a public press release that $500k was to be used to reduce and eliminate existing debt - what they did was reduce the existing debt by only $4k, and took on new debt totaling $681k"
Question - what are the terms of this new $800k financing?
