Hollywall Entertainment Inc (OTCMKTS:HWAL) shares skyrocketed 230% on Friday to $0.00990 and were flat in after-hours trading. Share prices have been trading in a 52-week range of $0.00 to $6.50. The company has a market cap of $215,673.00 at 23.53 million shares outstanding.
Hollywall Entertainment Inc is a multifaceted media and entertainment company that is focused on maximizing its rights to its music, film, television, home video and software game libraries. The company is developing a digital distribution and verification system and operates its collection of family entertainment content through four operating divisions: Hollywall Music, Hollywall TV, Hollywall Films and Hollywall Networks.
Hollywall TV is in development as an advertising or membership-based digital network in conjunction with an entertainment representation firm. Hollywall Music is packaging legacy music and video collector sets for retail, wholesale and download sales. Hollywall Publishing intends to license music from its catalog for use in television, films and for advertising commercials. Hollywall’s subsidiary, Investigative Services Agency Inc., offers professional security, recovery, investigative, executive training and protection services.
In its press release last week, Hollywall Entertainment Inc announced that it filed a complaint against Blackbridge Capital LLC in its efforts to rectify the recent volatility in the marketplace. Back in August, the company filed an Emergency Verified Complaint for Immediate Injunction and for Declaratory Judgment against Blackbridge. Last October, it was granted a temporary injunction involving Blackbridge to stop further improper conversions of the company’s stock. This was contingent on Hollywall Entertainment Inc posting a cash deposit of $10,000 into the trust account of Blackbridge’s attorney, as well as a bond for $29,100 based on the market value of the pending 9,000,000 shares that Blackbridge wanted released.
In the same month, Hollywall Entertainment Inc filed an Amended Complaint for additional counts and damages, which included the original count for declaratory judgment, two counts of breach of contract, two counts of fraud and one count of violation of Chapter 517 of the Florida Statutes. Apart from this, the company is suing Blackbridge for damages alleged for use of a ‘default’ rate of conversion of the alleged debt. As a result, an emergency motion to extend the temporary injunction was filed with the Circuit Court. However, this was denied by the Court.
A few days later, the temporary injunction expired and Blackbridge demanded the transfer agent for Hollywall to release the 9,000,000 shares of stock to which the company complied. These shares were then sold at market the next day.
Hollywall is far from alone with this issue. Many companies have unwittingly entered into these types of egregious agreements with numerous funders across the country and they are creating significant unforeseen issues,” remarked Hollywall Entertainment Inc Florida litigation Counsel, Craig Huffman. “The problem is that these letters can be the basis for allegations of abuse by the funders. In this amended complaint we have alleged that the default rate of conversion is completely wrong and has no basis under the facts or agreements.”
He added that transfer agents think that they have no choice in the face of these TA letters. He reiterated that Hollywall Entertainment Inc intends to vigorously pursue and protect all shareholders interest and continues to build and expand its operations for future shareholder value.
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