WESTON, FL--(Marketwired - Nov 7, 2016) - Petrone Worldwide, Inc. (OTC PINK: PFWI) (the "Company") 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 (the "SPA") 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
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.
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and is intended to qualify for the safe harbor from liability created by those laws. When used in this press release, the words "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan", "potential", "predict", "project", "should", "will", and similar expressions, are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Such statements involve known and unknown risks and uncertainties, many of which are beyond our control. All statements, other than statements of historical facts included in this press release regarding our strategy, future operations, financial position, prospects, plans and objectives of our management are forward-looking statements. Our actual results could differ materially and adversely from those anticipated in such forward-looking statements as a result of certain factors, including, but not limited to, the success of our on-going product development efforts, adverse results of any legal proceedings, diverse economic and competitive conditions, and any such difference may be caused by risk factors listed from time to time in the Company's press releases and/or its filings with the OTC Markets or as a result of other factors. We undertake no obligation to publicly update or revise any forward-looking statement to reflect actual results or changes in assumptions or other factors that could affect those statements.