DENVER, CO / ACCESSWIRE / January 28, 2016 / Hangover Joe's Holding Corporation (HJOE), developers of Hangover Recovery Shot and Git-R-Done-Energy, along with Git-R-Done Productions, Inc. and Larry the Cable Guy, announced today that it has filed a verified answer in the Court of the Eastern District of New York, against KBM Worldwide Inc. Among the numerous responses include usury and violation of market manipulation provisions by KBM.
"The system used to finance small companies in the United States today has become completely insane," said Matthew Veal, CEO of Hangover Joe's. "This business was started with friends and family funding that eventually exceeded several hundred thousand dollars. The business grew to where it sold product in the millions, but as a startup did not qualify for traditional or SBA funding and needed additional capital for growth. It was approached about going public with the promise of significant investment, which of course did not materialize. Its only option for financing has been the nightmare of convertible loans.
These loans as a group all have been repaid not only to the extent of the entire amount of their principal but significant interest as well, not at the effective interest rates of the loans and meritless fees added on to them, but certainly at or near the legal rate of interest. However, the convertible loan process also triggered a deluge of short sellers and paid bashers adding to the degree of difficulty by a process of attempted shaming in social media, working stock boards and otherwise to inhibit potential investors and customers from a growing company and brands. This is an attempt to harm the company and we don't take these matters lightly. To further add insult to injury, several of these lenders have now sued us, including dubious claims against individual members of management which seek to further and unfairly harm reputations, and we have responded to these as well. This is done thousands of times in our economy today, destroying companies, jobs, and investor wealth in the process. And for what gain? Hangover Joe's at least has come through the process strong enough to hire talented attorneys who have started the process of removing this scourge from our capital markets.
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