Horiyoshi Worldwide Inc. (OTC:HHWW) Badly Missing the Promotions
24 Feb 2011

Horiyoshi Worldwide Inc. (OTC:HHWW) new line of business brought a lot of excitement on the market, which was additionally fueled by paid stock promotions and countless press releases by the company. But after the exorbitance, in which HHWW share price bubbled to over $3, now it looks like the stock market comes back to reality.

For HHWW reality means recently a stabilization around the 90 cents level, the closing price being 91 cents yesterday. Logically, after the glorious entry into the fashion industry announced in November, and after certain third parties stopped paying to stock promoters, the interest in the shares of HHWW could not hold as strong. Only about 330,000 shares were traded in yesterday session. What is worse, even new promotions don’t seem to work any more, the last one passing almost unnoticed at the beginning of the month and followed obviously by a massive sell-off on which HHWW price tanked to its present levels.

The former mineral exploration company Kranti Resources, Inc. is now known as Horiyoshi Worldwide, and although having been idle for several years, it looks now enthusiastic to make this new business work, noticed on its attempts to present new collections at fashion shows in the hope to capture distribution contracts. Lastly, the company even appointed a new member to its Advisory Board, a person with 25 years of experience in the international fashion industry.

From all of the announcements, the only one confirmed by an SEC filing, and maybe the only one of interest for potential investors, is that of the potentially available $5 million from a private placement. Though, the $5 million will not immediately become the only asset on Horiyoshi Worldwide balance sheet. According to the 8-k, under the agreement the cash can be received in the form of periodic draw downs upon request. In exchange, the company will have to issue shares of its common stock to the investor, whereby the share price will be set at 75% of an average closing prices for the ten days preceding any draw down.

For investors to which the terms of that agreement do not sound that favorable remains the only the hope that this new business, being so young and fresh, may still have a chance to make the breakthrough.

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