Worlds Inc (WDDD)

[Rainmaker80]

Maturity date? Oh this was posted a while back for you. It has use for all I would have thought since its some 'basics about convertibles' and since that seems to be a source of your constant questions about this stock, I would assume its definitely not off-topic! This should help clarify your concerns and is completely consistent with my previous points on the topic.

:) Happy reading and learning!

-----------------------------------------------------
Vanilla convertible bonds are the most plain convertible structures. They grant the holder the right to convert into certain amount of shares determined according to a conversion price determined in advance. They may offer coupon regular payments during the life of the security and have a fixed maturity date where the nominal value of the bond is redeemable by the holder. This type is the most common convertible type and is typically providing the asymmetric returns profile and positive convexity often wrongly associated to the entire asset class: at maturity the holder would indeed either convert into shares or request the redemption at par depending on whether or not the stock price is above the conversion price.

Any convertible bond structure, on top of its type, would bear a certain range of additional features as defined in its issuance prospectus:

Conversion price: The nominal price per share at which conversion takes place, this number is fixed at the issuance but could be adjusted under some circumstance described in the issuance prospectus (e.g. Underlying stock split). You could have more than one conversion price for non-vanilla convertible issuances.

Issuance premium: Difference between the conversion price and the stock price at the issuance.

Conversion ratio: The number of shares each convertible bond converts into. It may be expressed per bond or on a per centum (per 100) basis.

Maturity/redemption date: Final payment date of a loan or other financial instrument, at which point the principal (and all remaining interest) is due to be paid. In some cases, there is no
Final conversion date: Final date at which the holder can request the conversion into shares. Might be different from the redemption date.

This point goes to standard vs non standard indenture / terms I mentioned prior. ie None of us know the exact terms of the converts so assuming they were "standard' is a rational assumption. If our converts were non-standard, we wouldn't know until we see the quarterly and we saw early conversion (again since we haven't seen the indenture). Given the ability to convert prior to maturity is 'non-standard' it would be written in as a negotiated point. In addition, going back to the point on the extension granted on the converts, this further led to the logical conclusion that conversion was tied to maturity (as it is in a standard indenture/occurs most commonly when underwriting a convert)....So yes I know what I am talking about sorry! . Anyone suggesting otherwise really should continue to educate themselves on the basics of converts before making such claims. Assuming a convert with 'a-typical' clauses is actually illogical and certainly when factoring in the extension, an even more illogical conclusion. So forgive me for thinking logically and basing my views on typical convert structures and recent events (extensions which lent itself to the same logical conclusion).

Coupon: Periodic interest payment paid to the convertible bond holder from the issuer. Could be fixed or variable or equal to zero.

Yield: Yield of the convertible bond at the issuance date, could be different from the coupon value if the bond is offering a premium redemption. In those cases the yield value would determine the premium redeption value and intermediary put redemption value.

Convertibles could bear other more technical features depending on the issuer needs:

Call features: The ability of the issuer (on some bonds) to call a bond early for redemption. This should not be mistaken for a call option. A Softcall would refer to a call feature where the issuer can only call under certain circumstances, typically based on the underlying stock price performance (e.g. current stock price is above 130% of the conversion price for 20 days out of 30 days). A Hardcall feature would not need any specific conditions beyond a date: that case the issuer would be able to recall a portion or the totally of the issuance at the Call price (typically par) after a specific date.

Put features: The ability of the holder of the bond (the lender) to force the issuer (the borrower) to repay the loan at a date earlier than the maturity. These often occur as windows of opportunity, every three or five years and allow the holders to exercise their right to an early repayment.

Contingent conversion (aka CoCo): Restrict the ability of the convertible bondholders to convert into equities. Typically, restrictions would be based on the underlying stock price and/or time (e.g. convertible every quarter if stock price is above 115% of the conversion price).[3] Reverse convertibles in that respect could be seen as a variation of a Mandatory bearing a contingent conversion feature based. More recently some CoCo's issuances have been based on Tier-1 capital ratio for some large bank issuers.

Reset: Conversion price would be reset to a new value depending on the underlying stock performance. Typically, would be in cases of underperformance (e.g. if stock price after a year is below 50% of the conversion price the new conversion price would be the current stock price).

Change of control event (aka Ratchet): Conversion price would be readjusted in case of a take-over on the underlying company. There are many subtype of ratchet formula (e.g. Make-whole base, time dependent...), their impact for the bondholder could be small (e.g. ClubMed, 2013) to significant (e.g. Aegis, 2012). Often, this clause would grant as well the ability for the convertible bondholders to "put" i.e. ask for the early repayment of their bonds.

Now I don't like using Wiki as a source but it explains the basics in layman's terms. https://en.wikipedia.org/wiki/Convertible_bond

This should put to rest the nonsense about my facts. I have been correct in my views, have provided value add insight to this board on the legal aspects of this case, the financial situation (via my analysis of the financial reports, proxy, and market behavior), and what I expect from the price in the near term.

Those who disagree, should read those documents, as well as this post, provide factual information and analysis based on that factual information from those filings etc that suggest my numbers and knowledge are incorrect

From everything I have posted, I am correct. Not perfect, but correct.

Good luck