NASHVILLE, Tenn., Nov. 1, 2016 /PRNewswire/ -- Hollywall Entertainment, Inc., (OTC Pink: HWAL), "Hollywall", files complaint against Blackbridge Capital LLC., "Blackbridge" in its ongoing efforts to rectify the recent volatility in the marketplace.
On August 23, 2016, Hollywall filed an Emergency Verified Complaint for Immediate Injunction and for Declaratory Judgment against Blackbridge with the Circuit Court of the Thirteenth Judicial Circuit in and for Hillsborough County, Florida, Civil Division.
On October 13, 2016, Hollywall was granted a temporary injunction involving Blackbridge to stop further improper conversions of the company's stock. The injunction was contingent upon Hollywall posting 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. Hollywall had the understanding that by posting both bonds required for the injunction that this would negate Blackbridge from having the 9,000,000 shares released to them and for the balance of the note being paid in full, meaning no further conversions would be due under the note to Blackbridge.
On October 24, 2016, Hollywall filed an Amended Complaint for additional counts and damages. The amended complaint contains 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. Additionally, in the amended complaint Hollywall is suing Blackbridge for damages alleged for use of a 'default' rate of conversion of the alleged debt which is resulting in the exorbitant amount of shares being issued.
On October 26, 2016, an emergency motion to extend the temporary injunction was filed with the Circuit Court. Such motion was denied by the Court since the Court stated in its Order that if the allegations are proven, then Hollywall has a remedy at law, being that money damages can be a remedy to such matters.
On October 27, 2016, the temporary injunction expired and Blackbridge demanded the transfer agent for Hollywall to release the 9,000,000 shares of stock; and the transfer agent complied. On the same day Blackbridge was served the Amended Complaint for Declaratory Judgment and Damages and Summons in their New York Office
On October 28, 2016, 9,000,000 shares of Hollywall's stock was sold into the market.
Hollywall's Florida litigation Counsel, Craig Huffman, stated regarding these recent events, "Currently I have four situations going on with other companies, including this, involving these type of Transfer Agent, (TA) letters from several funders. 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. These TA letters are a relatively new development in the industry. 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. Unfortunately the transfer agents take the view that they have no choice in the face of these TA letters. Hollywall's claims for damages in the amended complaint of course include all issuances we allege are wrongful and incorrect."
Hollywall intends to vigorously pursue and protect all shareholders interest and continues to build and expand its operations for future shareholder value.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and as such, may involve risks and uncertainties. These forward looking statements relate to, amongst other things, current expectation of the business environment in which the company operates, potential future performance, projections of future performance and the perceived opportunities in the market. The company's actual performance, results and achievements may differ materially from the expressed or implied in such forward-looking statements as a result of a wide range of factors.
Case no. 16-CA-7958
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SOURCE Hollywall Entertainment, Inc.