Hollywall Entertainment Inc (HWAL)

[Kool Aid Man]

Toxic financing uses "chump change" to destroy stocks.

As I pointed out before.. yes the total amount of money Blackbridge paid Roxanna's EMXC was a mere $25k. HOWEVER.. as court records and HWAL's own filings state.. the contract between HWAL and Blackbridge Capital allowed them to be issued >>43 million shares<< in exchange for retiring a paltry >>$2,100<< in debt!!

According to records provided by HWAL... they still owe Blackbridge a balance of $6,900 which --Blackbridge asserts-- allows them to continue to convert at .0001 per share (NOT at the current PPS). That means they could potentially wind up with an additional >>69 MILLION more shares priced at .0001 to dump into the market as HWAL has alleged they did multiple times last fall. And that doesn't even include the interest owed.

HWAL can't simply write a check for the $6,900 they owe. That's not how the contract works. Read the court records-->

"On Oct 13th Hollywall posted a cash deposit of $10,000 into the trust account of Blackbridge's attorney, as well as a bond for $29,100; which was set by the court as the market value of the pending 9,000,000 shares of Hollywall's stock requested by Blackbridge to be released."

So why would HWAL put up $39,100 in assurances in a desperate attempt to stop less than $7,500 in debt conversions that were remaining a/o October?

Answer: They're contractually screwed.

This $39k cash/bond move bought them a mere 2 week temporary injunction after which the toxic conversions continued with a vengeance. The lawsuit continues for a reason. Next up-->

Defendant’s Motion to Dismiss currently filed and set for hearing before the Court on May 30, 2017. Plaintiff’s Response Motion and Memorandum is due at least 20 days before such motion is heard, and Defendant may submit a rebuttal brief no later than 5 days before such hearing... jurisdictional discovery is to be concluded by April 30, 2017.

So HWAL has to file a response to Blackbridge's "motion to dismiss" no later than May 11th. The

More--
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=130735522

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=130735648

Glad I could clear up how "chump change" can wreck a stock.

BTW: The latest court filing dated 3/22/17 --the same day HWAL increased it's A/S from 200 to 300 million-- is entirely to resolve the issue of "jurisdiction." According to the filing

"They have agreed on the following matters:

a. On June 29, 2015 BLACKBRIDGE and HWAL entered into a Convertible Promissory Note (the “Note”), in the amount of twenty-five thousand dollars ($25,000), which note was expected to effectuate the assignments to BLACKBRIDGE of the debt owed by HWAL to EMAX. HWAL entered into the Convertible Promissory Note to BLACKBRIDGE in its New York, New York office.

b. BLACKBRIDGE negotiated with PLAINTIFF while BLACKBRIDGE was in its offices in New York and PLAINTIFF was in its offices in Tennessee."

Yet for some bizarre reason, HWAL filed suit in Florida where neither company is based. Discovery regarding this issue is ordered "to be concluded by April 30, 2017." Also "Defendant’s Motion to Dismiss currently filed and set for hearing before the Court on May 30, 2017. Plaintiff’s Response Motion and Memorandum is due at least 20 days before such motion is heard, and Defendant may submit a rebuttal brief no later than 5 days before such hearing."

In short... HWAL's case could be thrown out of the Florida court system by May 30th. However, if not the case will be allowed to proceed and each side will argue the terms of the contract.