Replies to post #7957 on Hollywall Entertainment Inc (HWAL)

[Kool Aid Man]

That's precisely how it works...100% legal.

Anyone who doesn't understand "death spiral financing" is in for a rude awakening--> https://en.wikipedia.org/wiki/Death_spiral_financing

The primary issue of the lawsuit is a dispute over the conversion price of the discounted shares that HWAL owes Blackbridge (BB).

According to court records, HWAL entered into this convertible debt agreement with Roxanna Green's EMAX MEDIA which HWAL assumed when Roxy bought her way into this pos with her music license. Court filings confirm the original specified rate of conversion of debt-for-stock was quite low.

The 8/25/16 complaint by HWAL reads "On July 27, 2015, HWAL completed a common stock reverse division... in the amount of one (1) share for every seventy seven (77) shares of common stock." Then HWAL argues "BLACKBRIDGE to not take into account the 77 to 1 reverse division, and still uses the conversion price of $0.005 per share for such conversion."

Blackbridge maintains they are entitled to use the "default rate" for conversions per the contract and are not bound by HWAL's R/S.

On 10/27/16 HWAL argued "It is imperative that the injunction entered be extended, and is being sought to be maintained due to recent actions of Blackbridge who is attempting yet again, to convert the same debt, which has been covered for both principal and interest by the deposit of monies into their attorney’s trust account. Such actions are yet again threatening the material, irreparable and imminent harm to Hollywall if such action occurs. Blackbridge is attempting to use a conversion rate of $0.0001 per share as a default rate when no such default has occurred..."

Despite HWAL's pleadings, the court took no action to extend the temporary injunction beyond the initial 2 weeks. Consequently Blackbridge successfully forced HWAL to issue 43 million shares at a rate of .0001 which retired a mere $2,100 in debt between Sep 12th and Nov 21st 2016.

According to HWAL's own disclosure as of 12/31/16 it appears $6,900 remains to be converted (not including interest which may also be converted). If allowed to proceed at the rate of .0001 that would mean a minimum of 69 million more shares which Blackbridge could use to carpet bomb the market with.
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To view all court documents click here--> https://hover.hillsclerk.com/caseSearch.html then enter case# "16-CA-7958" Click "View" (the little spy glass). After it reloads click then "Events/ Documents" There are 36 court filings on this case dated in reverse order. Click the "Image" icon (the page with the green check mark on it) to view actual documents.