Hollywall Entertainment Inc (HWAL)

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WASHINGTON, DC / ACCESSWIRE / July 25, 2023 / Hollywall Entertainment, Inc. ("Hollywall" or "HWAL") (OTC Pink:HWAL) is pleased to announce the completion of a transaction involving the sale of assets from its music catalog (the "Catalog") to Melody Trust, Inc. ("Melody"), https://melodytrust.com. As a result of this transaction a stock dividend will be distributed to HWAL shareholders.

Hollywall Entertainment Inc., Tuesday, July 25, 2023, Press release picture
Hollywall Entertainment Inc., Tuesday, July 25, 2023, Press release picture
Pursuant to an asset purchase agreement executed by Hollywall and Melody, HWAL will issue a stock dividend of 1.3 Melody Trust Preferred B Series Shares for each HWAL common share held on the record date. The stated capital value of each Melody Trust Preferred B Series Share is $1.00. The dividend is scheduled to be distributed on or about October 2, 2023, to HWAL stockholders of record as of the close of business on September 30, 2023.

The Catalog comprises a prestigious collection of over 17,500 master recordings, showcasing the remarkable talents of renowned music legends. These recordings encompass iconic performances by esteemed artists such as Ray Charles, Elvis Presley, Tony Bennett, The Bee Gees, Chicago, The Platters, George Gershwin, Marvin Gaye, James Brown, Bo Didley, Willie Nelson, Waylon Jennings, and Rod Stewart, among many others.

Based on an intangible asset valuation conducted by Sun Business Valuation, which is available for reference on HWAL's official website, the fair value of the Catalog was assessed to be approximately $146 million as of March 12, 2021. HWAL and Melody are confident that the master recordings within the Catalog possess substantial growth potential and are poised to appreciate significantly in value well into the future. This belief underscores their strategic positioning to capitalize on the anticipated growth and maximize long-term returns to shareholders.

Melody, utilizing the Catalog, is entering the realm of blockchain technology and non-fungible tokens (NFTs). The emergence of music NFTs has the potential to revolutionize the landscape of music discovery, distribution, and monetization. It is projected that the NFT segment will experience significant growth, with experts predicting a market capitalization of $80 billion by 2025. Notably, the month of December 2021 alone witnessed NFT transactions valued at $4 billion.

In partnership with Melody, HWAL's new tech division is currently in the planning stage of developing pioneering blockchain and NFT technology systems. These innovative systems aim to facilitate real-time royalty payments for music owners, writers, publishers, and performing artists. By harnessing the power of blockchain and NFTs, HWAL and Melody are dedicated to introducing cutting-edge solutions that enhance transparency, efficiency, and fairness in the music industry's royalty ecosystem.

Roxanna Green, the President of HWAL, expressed her strong conviction in the potential of a mutually beneficial collaboration between the two companies. She stated, "We are thrilled about the compelling opportunity that lies ahead as we join forces with Melody Trust to establish a disruptive blockchain entertainment and media company. This collaboration has the potential to surpass the sum of its parts, both technically and fundamentally, creating a truly remarkable venture. We eagerly anticipate working closely with the talented team at Melody Trust as we embark on this exciting journey together."

A Quick Update on Prior Business: The 50 Million Share Reduction.

On April 10, 2023, Hollywall announced the divestment of its infrastructure development subsidiary. As a result of this transaction, 50,020,609 common shares and 56,391 Series A Preferred shares of HWAL's stock are currently in the process of being canceled and returned to its treasury.