AVLP Avalanche International Corporation (CE)

 

Item 1.      Security and Issuer

 

The title and class of equity securities to which this Schedule 13D/A relates is common stock of Avalanche International Corporation (the “ Issuer ”). The address of the principal executive offices of the Issuer is 5940 S. Rainbow Blvd., Las Vegas, Nevada 89118.

Item 2.      Identity and Background

(a) This statement is filed on behalf of DPW Holdings, Inc., a Delaware corporation (the “ Reporting Person ”).

(b) The Reporting Person's business address is 201 Shipyard Way, Newport Beach, California 92663.

(c) Not applicable.

(d) During the last five years, the Reporting Person has not been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors).

(e) During the last five years, the Reporting Person has not been a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result thereof was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws.

(f) The Reporting Person is a Delaware corporation.

Item 3.      Source and Amount of Funds or Other Considerations

The Reporting Person made loans and advances to the Issuer and purchased the Issuer’s common stock with the Reporting Person’s working capital.

Item 4.      Purpose of Transaction

This Schedule 13D/A is filed to report a series of transactions in which the Reporting Person purchased an additional aggregate of 395,402 shares of the Issuer’s common stock (the “ Common Stock ”) in the open market since its Schedule 13D filed with the SEC on September 7, 2017 and therefore presently owns an aggregate of 709,633 such shares.

The Reporting Person has acquired the Common Stock, Convertible Promissory Note, and Warrant described in Item 5 for investment purposes. The Reporting Person intends to review and evaluate its investment in the Issuer’s shares of Common Stock, Convertible Promissory Note and Warrant on an ongoing basis and may, depending upon its evaluation of the business and prospects of the Issuer, or such other considerations as it may deem relevant, determine to increase, decrease, or dispose of its holdings of the shares of common stock of the Issuer, Convertible Promissory Note, Warrants and underlying common stock, engage in hedging transactions, evaluate a potential acquisition of the Issuer or of assets of the Issuer.

Consistent therewith, the Reporting Person may, subject to applicable law and the terms of any confidentiality agreement with the Issuer, continue to engage in communications regarding such matters with members of management and the Board of Directors of the Issuer, and initiate such communications with other current or prospective shareholders, industry analysts, existing or potential strategic partners or competitors, investment and financing professionals, sources of credit and other investors. Such factors and discussions may materially affect, and result in, the Reporting Person, subject to applicable law, modifying its ownership of securities of the Issuer, exchanging information with the Issuer, proposing changes in the Issuer’s operations, governance or capitalization, or in proposing one or more of the other actions described in subsections (a) through (j) of Item 4 of Schedule 13D.

In addition, the Reporting Person reserves the right to formulate other plans and/or make other proposals, and take such actions with respect to its investment in the Issuer, including any or all of the actions set forth in paragraphs (a) through (j) of Item 4 of Schedule 13D, or acquire additional securities of the Issuer or dispose of all the securities of the Issuer beneficially owned by it, in public market or privately negotiated transactions. The Reporting Person may at any time reconsider and change their plans or proposals relating to the foregoing.

 

 

Item 5.      Interest in Securities of the Issuer

(a)	The Reporting Person acquired 709,633 shares of Common Stock of the Issuer in open market transactions as of May 9, 2018.

In addition, pursuant to a Loan and Security Agreement with an effective date of August 21, 2017, by and between the Reporting Person and the Issuer (“ Loan Agreement ”), subject to terms and conditions set forth therein, the Issuer has the right to seek advances up to $5 million. As evidence of advances, the Issuer shall issue to the Reporting Person convertible promissory notes convertible into shares of Common Stock at $0.50 per share (each, a “ Note ” and collectively, the “ Notes ”) and the right to receive a warrant to purchase shares of Common Stock in a number equal to the amount of the advance divided by $0.50 and at an exercise price of $0.50 per share (each, a “ Warrant ” and collectively, the “ Warrants ”).

        

(b)	The Reporting Person may be deemed to hold sole voting and dispositive power over 23,804,513 shares of the Common Stock.

(c)	The Reporting Person engaged in the following open market purchases in the Common Stock since August 28, 2017:

 

Date	Quantity	Price
8/28/2017	4,615	$0.51
9/14/2017	3,800	$0.60
10/17/2017	6,225	$0.60
10/19/2017	24,900	$0.62
10/20/2017	8,462	$0.67
12/1/2017	5,000	$1.25
12/1/2017	50,000	$1.12
12/1/2017	10,000	$1.13
12/1/2017	5,000	$1.25
12/4/2017	10,000	$1.25
12/5/2017	20,000	$1.33
12/15/2017	10,000	$1.60
1/2/2018	5,000	$1.69
1/2/2018	6,000	$1.80
1/3/2018	3,000	$2.13
1/31/2018	9,000	$1.51
1/31/2018	300	$1.25
2/8/2018	1,000	$1.55
2/27/2018	4,000	$1.25
2/28/2018	1,000	$1.20
3/1/2018	4,900	$1.00
3/2/2018	3,000	$1.05
3/6/2018	5,000	$1.05

3/6/2018	9,000	$1.07
3/15/2018	5,000	$0.96
3/19/2018	3,000	$0.95
3/23/2018	4,000	$0.95
3/27/2018	10,000	$0.88
3/29/2018	5,000	$0.98
4/4/2018	5,000	$1.00
4/10/2018	5,000	$0.51
4/11/2018	1,100	$0.70
4/12/2018	2,900	$0.73
4/13/2018	5,000	$0.60
4/16/2018	5,000	$0.60
4/16/2018	3,000	$0.60
4/17/2018	14,000	$0.52
4/17/2018	10,000	$0.60
4/18/2018	10,000	$0.78
4/19/2018	10,000	$0.85
4/24/2018	3,000	$0.70
4/26/2018	30,000	$0.73
4/26/2018	24,100	$0.74
4/27/2018	10,000	$0.93
4/27/2018	4,000	$0.92
4/27/2018	6,100	$0.92
4/30/2018	4,000	$0.98
4/30/2018	7,000	$0.98
Total	395,402

 

(d)

To the best knowledge of the Reporting Person, except as set forth in this Schedule 13D/A, no person other than the Reporting Person has the right to receive, or the power to direct the receipt of, dividends from, or the proceeds from the sale of the 23,804,513 shares of common stock reported in Item 5(a).

(e)	Not applicable.

Item 6.      Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer

None.

 

Item 7.    Material to be Filed as Exhibits

SIGNATURES

 

After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.