One World Holdings Inc (OTCMKTS:OWOO) Standing Tall Again

In July, One World Holdings Inc (OTCMKTS:OWOO)’s CEO, Corinda Joanne Melton, said in a letter to the shareholders that the company is looking for ways of eliminating debt and cutting ties with the funders who have been “aggressively selling” their shares on the open market. Some of the long-term shareholders probably had a deja vu moment.

Back in December 2013, Ms. Melton issued a remarkably similar letter to the shareholders. She said that the growing sales have allowed OWOO to start work on eliminating convertible debt and implementing a share repurchase program.

Instead of doing that, Ms. Melton and the rest of the management team informed their shareholders a few months later that they are about to go through a 1 for 750 reverse split.

The “growing sales” part of Ms. Melton’s 2013 shareholder letter also raises a few question marks. There was indeed an increase, but the revenues peaked at $75 thousand for the fourth quarter of last year and they’ve been tumbling down since then. A trend that was confirmed ten days ago when OWOO filed its 10-Q for the second quarter of 2015. Here’s what the company reported:

• NO cash
• current assets: $608,465
• current liabilities: $24,951,253
• quarterly revenue: $833
• quarterly net loss: $8,005,367

Not only did OWOO fail to eliminate the extremely toxic convertible debt, but it actually managed to pick up some more. During the first two quarters of 2015, the company issued $853 thousand worth of debentures convertible into common stock at either a fixed rate or a discount to the market price.

The effects on the share structure are now painfully obvious. Between November 2014 and August 2015, the number of issued and outstanding shares grew from less than 50 million all the way to nearly 370 million. During the first six months of this year, a total of 167 million shares saw the light of day as a conversion of debt at an average rate of $0.004 per share and between June 30 and August 14, a further 29 million were issued at $0.001 apiece.

As it turns out, however, the horrific dilution and the terrible financial statement are not enough to stop OWOO. The stock first spiked in June and although it’s been rather volatile, it seems to be holding up relatively well. It’s been especially active over the last few days. Friday’s session, for example, ended with a dollar volume of over $200 thousand and price gains of 22%. The starting point for the new week is $0.0072 per share.

As you probably know, the initial jump was caused by the announcement of OWOO‘s Prettie Girls Dolls entering nearly 3,000 Walmart stores. The good news has been coming ever since, with press releases about a new cartoon series based on the Prettie Girls characters, among other things. The company’s official Twitter profile says, however, that we’ve seen nothing yet. Apparently, a major announcement is in the works and it’s going to be much bigger than the one about Walmart.

Sounds good… and familiar. Especially for the people who had a deja vu moment last month.