The toxic Blackbridge problem...
HWAL owes a Convertible Note Payable (that Roxanna Green racked up under her defunct EMAX which HWAL assumed) in the amount of $25,000 - bearing interest at 5% per year, dated June 29, 2015.
A partial note of in the amount of $6,000 was converted and paid on July 2, 2015 for 1,200,000 common shares at $.005 per share.
The nest two tranches were converted at a much higher price. The question is why.
A partial note of in the amount of $5,000 was converted and paid on August 5, 2016 for 1,000,000 common shares at $.05 per share. [Note: this is what HWAL reports.. but the math is wrong. $5k / .05= 100k shares. They probably meant .005]
A partial note of in the amount of $5,000 was converted and paid on August 14, 2016 for 1,000,000 common shares at $.05 per share.
Those conversions of 3.2 million shares were priced at .005-.05 retired $16,000 of the $25,000 debt leaving a balance of $9,000 left to be converted. However, turns out HWAL pulled a 1-for-77 share reverse split dated 7/27/15 after the first conversion. But apparently Blackbridge felt their agreement was written such that they weren't bound by HWAL's R/S. Therefore, future conversions involved massive amounts of shares because they were priced at .0001. The T/A Cleartrust agreed and issued the shares. HWAL sued both Blackbridge and Cleartrust. However, despite the suit, here's what followed:
A partial note of in the amount of $700 was converted and paid on September 12, 2016 for 7,000,000 common shares at $.0001 per share.
A partial note of in the amount of $800 was converted and paid on September 27, 2016 for 8,000,000 common shares at $.0001 per share.
A partial note of in the amount of $900 was converted and paid on October 31, 2016 for 8,000,000 common shares at $.0001 per share.
A partial note of in the amount of $1,000 was converted and paid on November 14, 2016 for 10,000,000 common shares at $.0001 per share.
A partial note of in the amount of $1,000 was converted and paid on November 21, 2016 for 10,000,000 common shares at $.0001 per share.
Based on that lower share rate, an additional 43 million shares were issued which retired a paltry $2,100 in debt!!
So added to the $16,000 paid off earlier it appears the total comes to $18,100 leaving a balance of $6,900 still left to convert.
IF Blackbridge prevails, and is able to convert the remainder of that $6,900 at the same .0001 per share, that comes to 69 million MORE shares! Hence the panic and legal maneuvering by HWAL to stop the bleeding. This explains the change in T/A's, the 50% increase in the A/S and the stock split..
BUT if Blackbridge succeeds, they could potentially wind up having gotten 115.2 million shares.. of which a total of 112 million could be priced at .0001.
This info is contained Hollywall Entertainment, Inc.
Notes to Consolidated Financial Statements
December 31, 2016 and in court filings.
