One World Holdings Inc (OTCMKTS:OWOO) was a massive mover during Thursday’s trading session, surging by 11% on heavy volumes, turnover being8 times the daily average. The stock has been trending lower ever since hitting an intraday high of $0.0122 and is currently seen taking support at levels of $0.0052. One World currently faces resistance at its 50 day moving average. The indicator measuring relative strength continues to trend higher indicative of the strong buying interest. The oscillator for momentum clearly shows strong bullish momentum. Traders see the stock heading to levels of $0.0088 in the coming trading sessions.
One World Holdings Inc (OTCMKTS:OWOO) announced that it would merge with Tonner Doll Company to carry forward the One World Doll Project. As per the reports, the board of directors of both the companies has given their permission to sign a definitive agreement regarding this transaction.
Insights of This Agreement
Both the companies entered into this definitive agreement on December 2, 2015. It’s a stock-for-stock friendly agreement under which all the 145,200,000 outstanding shares of Tonner Doll Company are to be converted into an equal number of One World Holdings’ shares. In other words, each share of Tonner Doll company will be converted into One World Holdings common shares. As a result of this exchange, shareholders of Tonner Doll company will owe about 15% common stocks of One World Holdings.
Once the merger is executed, and all the arrangements are made, the One World Doll Project will be changed to Tonner One World, so that it can reflect the combined business of both the entities at the same time. Under the terms of this definitive agreement, all the licenses, assets, and contracts belonging to both the companies will become Tonner-One World’s property. However, Tonner-One World will continue to work as the wholly owned subsidiary of One World Holdings. Later on, it will file a plea with the state of Nevada and FINRA to change the name to Tonner One World Holdings, Inc.
The merger isn’t likely to put any negative impact on the funding scheme of One World in the future. As per the reports, a private equity firm based in Connecticut, which has been providing regular funding to One World Holdings for the past three years, has agreed to continue the funding. It has confirmed that an additional funding of $750,000 will be provided to the new entity immediately after the merger. It will continue to do so until the proposed amount of $5 million isn’t given in the form of funding to Tonner One World Holdings, Inc.