Current Report Filing (8-k)
June 26 2017 - 2:08PM
Edgar (US Regulatory)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported)
June 22, 2017
PETRONE WORLDWIDE, INC.
(Exact Name of Registrant as Specified in Charter)
Nevada
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000-30380
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87-0652348
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(State or Other Jurisdiction of Incorporation)
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(Commission File Number)
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(IRS Employer Identification Number)
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2200 N. Commerce Parkway
Weston, Florida
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33326
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(Address of Principal Executive Offices)
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(Zip Code)
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(Registrant's telephone number, including area
code: (855) 297-3876
N/A
(Former Name or Former Address, if Changed Since
Last Report)
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
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Item 1.01 Entry into a Material Definitive
Agreement.
Securities Purchase
Agreements and Notes
On June 22, 2017, Petrone
Worldwide, Inc. (the “Company”) entered into a securities purchase agreement (“SPA”) with EMA Financial,
LLC (“EMA), upon the terms and subject to the conditions of SPA, we issued a convertible promissory note in the principal
amount of $100,000.00 (the “Note”) to EMA. The Company received proceeds of $90,000.00 in cash from EMA. Interest accrues
on the outstanding principal amount of the Note at the rate of 10% per year. The Note is due and payable on June 22, 2018. The
Note is convertible into common stock, subject to Rule 144, at any time after the issue date, at the lower of (i) the closing sale
price of the common stock on the trading day immediately preceding the closing date, and (ii) 55% of the lowest sale price for
the common stock during the twenty (20) consecutive trading days immediately preceding the conversion date. If the shares are not
delivered to EMA within three business days of the Company’s receipt of the conversion notice, the Company will pay EMA a
penalty of $1,000 per day for each day that the Company fails to deliver such common stock. EMA does not have the right to convert
the note, to the extent that it would beneficially own in excess of 4.9% of our outstanding common stock. The Company shall have
the right, exercisable on not less than five (5) trading days’ prior written notice to EMA, to prepay the outstanding balance
on this note for (i) 135% of all unpaid principal and interest if paid within 90 days of the issue date and (ii) 150% of all unpaid
principal and interest starting on the 91st day following the issue date. In the event of default, the amount of principal and
interest not paid when due bear default interest at the rate of 24% per annum and the EMA Note becomes immediately due and payable.
In connection with the Note, the Company paid EMA $4,000 for its expenses and legal fees.
The Note is a long-term
debt obligation that is material to the Company. The Note also contains certain representations, warranties, covenants and events
of default including if the Company is delinquent in its periodic report filings with the SEC, and increases in the amount of the
principal and interest rates under the Note in the event of such defaults. In the event of default, at the option of EMA and in
EMA’s sole discretion, EMA may consider the Note immediately due and payable.
The
foregoing descriptions of the SPA and Note are qualified in their entirety by reference to such SPA and Note, which are filed hereto
as Exhibits 10.1, and 4.1 and are incorporated herein by reference.
Item 2.03. Creation
of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The
disclosure in Item 1.01 of this Current Report on Form 8-K is incorporated by reference into this Item.
Item 3.02 Unregistered
Sales of Equity Securities
The
disclosure in Item 1.01 of this Current Report on Form 8-K is incorporated by reference into this Item. As of June 22, 2017, the
Company had a total of approximately 35,433,392 shares of common stock issued and outstanding.
These
securities were not registered under the Securities Act of 1933, as amended (the “Securities Act”), but qualified for
exemption under Section 4(a)(2) of the Securities Act. The securities were exempt from registration under Section 4(a)(2) of the
Securities Act because the issuance of such securities by the Company did not involve a “public offering,” as defined
in Section 4(a)(2) of the Securities Act, due to the insubstantial number of persons involved in the transaction, size of the offering,
manner of the offering and number of securities offered. The Company did not undertake an offering in which it sold a high number
of securities to a high number of investors. In addition, this investor had the necessary investment intent as required by Section
4(a)(2) of the Securities Act since they agreed to, and will receive, share certificates bearing a legend stating that such securities
are restricted pursuant to Rule 144 of the Securities Act. This restriction ensures that these securities would not be immediately
redistributed into the market and therefore not be part of a “public offering.” Based on an analysis of the above factors,
we have met the requirements to qualify for exemption under Section 4(a)(2) of the Securities Act.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits.
Exhibit No.
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Description
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4.1
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Convertible Promissory Note in the Principal Amount of $100,000.00, by and between Petrone Worldwide, Inc. and EMA Financial, LLC, dated June 22, 2017.
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10.1
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Securities Purchase Agreement, by and between Petrone Worldwide, Inc. and EMA Financial, LLC dated, June 22, 2017.
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SIGNATURES
Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.
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PETRONE WORLDWIDE INC.
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Date: June 23, 2017
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/s/ Victor Petrone
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Name: Victor Petrone
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Title: President/Chief Executive Officer
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