Worlds Inc (WDDD)

[madprophet]

The article I posted is in fact what I am talking about.
They exercised the warrants yes, before the split, but the warrants have not been given yet as they need to do RS to do that. As per the press release, Kidrin “As the number of our authorized outstanding shares was not sufficient to cover the warrant exercise, the company was required to implement a reverse stock split of our common shares to facilitate the issuance of the warrant conversion shares to our warrant holders. Following prior approval by our shareholders of a range for the stock split, we determined that a 5 to 1 reverse split was a reasonable ratio in order to fulfill our legal obligation to our investors and to allow the Company to receive the warrant exercise funds.”
So if there is no clause in the contract that says it will be adjusted for RS, then the warrants can be exercised at the original .025 not the readjusted price for the RS.

Read this-

http://www.farrellfritz.com/warrants-and-reverse-splits/

Clearly, though, common sense would dictate that your company would be entitled to adjust the strike price proportionately upward and the number of shares purchasable proportionately downward. Right?

Wrong. At least according to a recent decision on this issue by the highest court in New York State. On December 18, 2001, the New York Court of Appeals held in favor of a warrant holder by refusing to imply an adjustment provision that could have been, but was not, written into the warrant. The decision underscores the importance of skillful preparation of warrant agreements and careful due diligence investigation of a company’s outstanding options, warrants and other securities prior to effecting a reverse split or similar transaction.