Petrone Worldwide, Inc. (OTC PINK: PFWI) is pleased to announce that it has entered into definitive agreements to obtain up to $5 million dollars in financing in the form of an equity line. In addition, the Company signed a securities purchase agreement providing for the issuance of up to $385,000 in convertible debentures to the investor, Peak One Opportunity Fund, L.P. (Peak One).
Under the equity line agreement, subject to certain conditions, Peak One is to provide up to $5 million in financing to the Company over a 24-month period. In addition to certain other obligations set forth in the equity purchase agreement, the Company is required to file a registration statement with the U.S. Securities & Exchange Commission ("SEC"), registering the shares to be issued to Peak One, and Peak One's obligation to provide the financing is subject to the registration statement becoming effective. In the interim, the Company has issued a convertible debenture to Peak One in the principal amount of $85,000 (the "Initial Debenture"), as part of the $385,000 total potential issuance amount under the SPA.
The Company is also pleased to report that within the past 30 days, it retired its only other convertible note. Therefore, the Company has satisfied all of its previously issued convertible debt (excluding the recently issued Initial Debenture). The Company has been successful in consolidating its outstanding debt, thus the Company believes that this will allow the Company to better implement its financial and operating strategies.
Victor Petrone, the Company's CEO, stated, "True to our word, we have paid the total capital due from convertible notes in 2016 and have now found what we consider to be a long term financial partner, Peak One, who has committed to a $5 million-dollar equity line financing. We are confident that this equity line should allow us to create better investor sentiment as we seek better and stronger alternatives to raising capital. If circumstances and market conditions allow, the proposed financing that we receive from Peak One may allow us to reduce our overall debt levels, introduce more branded products for our hospitality customers, build our inventory levels, and develop a worldwide distribution channel for institutional and retail sales, which we seek to expand at the beginning of 2017." Petrone continued, "We believe that the Petrone Worldwide supply chain with JIT (Just in Time) delivery, within the market, immediately available inventory pars represents a breakthrough in supply chain delivery, and can bring significant benefit to institutional and retail customers alike."
Jason Goldstein, Founder and Managing Partner of Peak One, added, "As we increased our familiarity with the Petrone story, we became more and more enthusiastic about its brands, supply chain initiatives, and market potential. We are pleased to be an investor in Petrone as the Company ramps up the commercialization of its products."
Victor Petrone, Investor Relations
About Company Petrone Worldwide, Inc. has over twenty years of dedicated sales, marketing and product development expertise within the hospitality industry; selling products into worldwide markets acting as a import/ export and master distributor for manufacturers. Today has evolved to be a distributor of commercial grade tabletop, guest & bathroom accessory solutions for The Asian and The European marketplace. Our exclusive brands include Front of the House,room360 by FOH and Dewan products. Each manufacturer designs luxury products for the finest hotels, restaurants and retail worldwide; client hotel chains such as Marriott Hotel Brands, The Four Seasons Hotel & Resorts, Hilton Worldwide, Hyatt Hotels & Resorts and Starwood Hotel & Resorts.
