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Friday, 10/24/2014 1:52:07 PM

Friday, October 24, 2014 1:52:07 PM

Post# of 75186
On October 15th, OWOO had a share price trading low of 0.0033. Since the typical conversion usually occurs at a discount of 30% - 50% off of the the trading low for the measurement period, at least part of the recently obtained $800,000 financing will likely convert at a share price equivalent range of .0017 to .0023 (since I have not seen the agreement specifics, I have made a conversion assumption). We should have a better idea of the specifics of the financing terms of the $800,000 within a future 10-Q of 10-K OWOO filing.

With an assumed converted share cost basis of between .0017 and .0023, the toxic lender/share converter can sell all the way down to that price range and still turn a profit. The unfortunate consequence of selling into that share price range is that the next conversion has an even lower share price bottom, and therefore an even lower share price conversion rate. This vicious cycle usually continues until the share price is so low, that the company resorts to performing a reverse stock split (as an act of desperation) to get the share price back up (where is is again attractive to toxic lenders).

The above phenomenon is often referred to as a toxic debt downward spiral. An one does not have to look too far to find an example of it. One simply has to refer back to the trading price for OWOO about 12 months ago, when precisely the same thing occured.

I know that a sub penny share price was predicted for quite some time, and although it took some time, the predictions turned out to be very accurate. We now have predictions of the stock going into the triple zero range, and it wouldn't surprise me if that were to occur as well.

We may have had a better idea of the terms of the $800k financing, if the company had done what they said they would do and have regular periodic shareholder conference calls, but that is just one of the many things that mgmt has not lived up to.

As always, simply my opinion.

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