Worlds Inc (WDDD)

[WhatNestEgg]

Warrant holders will receive the same percentage of total outstanding shares pre- or post RS, so the dilution percentage pre-or post RS will be the same

This is not true. It depends if the warrant agreement includes specific language to ensure the company can adjust the warrant along with the RS.

Read this:

"Warrants and Reverse Splits
Your company has just consummated a one-for-five reverse stock split. As a result, the market price per share of the stock has increased five-fold with each stockholder now owning one-fifth of his original number of shares. A warrant holder then comes out of the woodwork seeking to purchase the number of shares set forth in his pre-split issued warrant at the lower pre-split strike price. The warrant has no adjustment provision in the event of a reverse split. 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."

this is from here: http://www.farrellfritz.com/warrants-and-reverse-splits

So as I previously stated the language in the agreement is critical to know. At this point we may only own a portion of the original 100% which is now potentially only 88% of the company. If you follow that.

At this point, even if it includes the language we still do not know how many shares are newly issued. We only know 3.2MM shares was not enough!