Wizard (WIZD) Stock Price

[makeminemarvel]

Generally, it will be worthless. If they declare Cha 11 and reorganize, it means existing shares in the new reorganized co. will be substantially diluted - at best (so if shares aren't worthless, you might just get 1 new share for each 100 old shares).

 

If want to bet on Wizard's future, save your money a while and buy the new stock that replaces the old.

 

The pecking order in a bankruptcy proceeding is (simply put) secured creditors, unsecured creditors, preferred stock and at bottom, common stock.

 

You forgot bankruptcy attorneys ahead of secured creditors!

[revat]

Generally, it will be worthless. If they declare Cha 11 and reorganize, it means existing shares in the new reorganized co. will be substantially diluted - at best (so if shares aren't worthless, you might just get 1 new share for each 100 old shares).

 

If want to bet on Wizard's future, save your money a while and buy the new stock that replaces the old.

 

The pecking order in a bankruptcy proceeding is (simply put) secured creditors, unsecured creditors, preferred stock and at bottom, common stock.

 

You forgot bankruptcy attorneys ahead of secured creditors!

 

the lesson, as always, is that the attorneys win (and probably some accountants)

[eewwnuk]

i don't know about the auditors getting rich...

 

Audit Fees

 

 

 

(a) The aggregate fees billed by Li & Company, P.C. for the audit of the Company’s financial statements for the fiscal years ended December 31, 2014 and 2013, were $65,000 and $63,000, respectively.

 

Audit Related Fees

 

(b) Li & Company, P.C. did not bill the Company any amounts for assurance and related services that were related to its audit or review of the Company’s financial statements during the fiscal years ended December 31, 2014 and 2013, respectively.

 

Tax Fees

 

© The aggregate fees billed by Li & Company, P.C. for tax compliance, advice and planning were $0 for the fiscal year ended December 31, 2014 and $0 for the fiscal year ended December 31, 2013.

 

 

All Other Fees

(d) Li & Company, P.C. did not bill the Company for any products and services other than the foregoing during the fiscal years ended December 31, 2014 and 2013, respectively.

 

https://www.sec.gov/Archives/edgar/data/1162896/000149315215004408/sch14-a.htm

 

 

[reddog4063]

Wizard looks like a pig but take a look at Collectors Universe instead...i see some really strong numbers. I would buy that instead.

[mattn792]

OP - the insider dealing continues at Wizard:

 

http://www.businesswire.com/news/home/20161205005658/en/Wizard-World-Enters-Definitive-Financing-Agreement-Bristol

 

Stock is down 22% in the face of this news. Spend your cash elsewhere, the insiders are clearly structuring the company's books to cut out everyone else when Wizard inevitably re-organizes in bankruptcy court. Your 10 stacks will turn into $1.75 in a hurry.

[mysterio]

OP - the insider dealing continues at Wizard:

 

http://www.businesswire.com/news/home/20161205005658/en/Wizard-World-Enters-Definitive-Financing-Agreement-Bristol

 

Stock is down 22% in the face of this news. Spend your cash elsewhere, the insiders are clearly structuring the company's books to cut out everyone else when Wizard inevitably re-organizes in bankruptcy court. Your 10 stacks will turn into $1.75 in a hurry.

 

This is not an endorsement of WIZD at its current level, but insiders often sell for a variety of reasons, including cashing in on shares they have been granted as compensation that they are obligated to hold for a period of time after being granted the options. Options have to mature, and sometimes this explains insider selling.

 

If Bristol is touted as a major shareholder, how would they benefit by seeing their "major position" liquidated? If they didn't want to prop up the company as it currently is, why not have Wizard declare bankruptcy and then swoop in to provide funding for the "new" Wizard?

 

FYI, I still wouldn't buy the stock. Just playing devil's advocate.

[mattn792]

OP - the insider dealing continues at Wizard:

 

http://www.businesswire.com/news/home/20161205005658/en/Wizard-World-Enters-Definitive-Financing-Agreement-Bristol

 

Stock is down 22% in the face of this news. Spend your cash elsewhere, the insiders are clearly structuring the company's books to cut out everyone else when Wizard inevitably re-organizes in bankruptcy court. Your 10 stacks will turn into $1.75 in a hurry.

 

This is not an endorsement of WIZD at its current level, but insiders often sell for a variety of reasons, including cashing in on shares they have been granted as compensation that they are obligated to hold for a period of time after being granted the options. Options have to mature, and sometimes this explains insider selling.

 

If Bristol is touted as a major shareholder, how would they benefit by seeing their "major position" liquidated? If they didn't want to prop up the company as it currently is, why not have Wizard declare bankruptcy and then swoop in to provide funding for the "new" Wizard?

 

FYI, I still wouldn't buy the stock. Just playing devil's advocate.

 

IMHO, it all depends on what collateral Wizard put up in order to secure this new round of financing. I'd highly doubt it was common stock but rather something that would prove to be relatively "bankruptcy safe". I agree the timing is curious on the surface if some sort of restructuring is imminent, but my assumption is that Kessler knows what he's doing.

 

I watched this happen with KIOR a couple years ago (they were a biofuels company with tech that worked but ultimately couldn't be commercially scaled). Vinod Khosla was their biggest backer, and his final round of capital infusion came with the terms that he'd essentially own the company outright were it to go bankrupt. Sure enough it did, and I'm guessing Khosla owns all the intellectual property and equipment now.

 

My take is that Kessler could be setting up to take over completely and spin the profitable aspects of the business off from the garbage parts, maybe even take profitable Wizard private altogether. We may see something like Wizard Convention Services (profitable) and Wizard We Ain't Got Nothing For You (better off just setting your cash on fire) down the line.

 

It'll be interesting to follow.

[Hamlet]

OP - the insider dealing continues at Wizard:

 

http://www.businesswire.com/news/home/20161205005658/en/Wizard-World-Enters-Definitive-Financing-Agreement-Bristol

 

Stock is down 22% in the face of this news. Spend your cash elsewhere, the insiders are clearly structuring the company's books to cut out everyone else when Wizard inevitably re-organizes in bankruptcy court. Your 10 stacks will turn into $1.75 in a hurry.

 

This is not an endorsement of WIZD at its current level, but insiders often sell for a variety of reasons, including cashing in on shares they have been granted as compensation that they are obligated to hold for a period of time after being granted the options. Options have to mature, and sometimes this explains insider selling.

 

If Bristol is touted as a major shareholder, how would they benefit by seeing their "major position" liquidated? If they didn't want to prop up the company as it currently is, why not have Wizard declare bankruptcy and then swoop in to provide funding for the "new" Wizard?

 

FYI, I still wouldn't buy the stock. Just playing devil's advocate.

 

IMHO, it all depends on what collateral Wizard put up in order to secure this new round of financing. I'd highly doubt it was common stock but rather something that would prove to be relatively "bankruptcy safe". I agree the timing is curious on the surface if some sort of restructuring is imminent, but my assumption is that Kessler knows what he's doing.

 

I watched this happen with KIOR a couple years ago (they were a biofuels company with tech that worked but ultimately couldn't be commercially scaled). Vinod Khosla was their biggest backer, and his final round of capital infusion came with the terms that he'd essentially own the company outright were it to go bankrupt. Sure enough it did, and I'm guessing Khosla owns all the intellectual property and equipment now.

 

My take is that Kessler could be setting up to take over completely and spin the profitable aspects of the business off from the garbage parts, maybe even take profitable Wizard private altogether. We may see something like Wizard Convention Services (profitable) and Wizard We Ain't Got Nothing For You (better off just setting your cash on fire) down the line.

 

It'll be interesting to follow.

 

I just looked at the SEC filing-

 

http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=11719581-968-11614&type=sect&TabIndex=2&companyid=93837&ppu=%252fdefault.aspx%253fcik%253d1162896

 

"Effective December 1, 2016, Wizard World, Inc. (the “ Company ”) entered into a securities purchase agreement (the “ Purchase Agreement ”) with Bristol Investment Fund, Ltd. (the “ Purchaser ”), an entity controlled by the Chairman of the Company’s Board of Directors, for the sale of the Company’s securities, comprised of (i) $2,500,000 of convertible debentures convertible at a price of $0.15 per share (the “ Debenture ”), (ii) warrants (the “ Series A Warrants ”) to acquire 16,666,667 shares of the Company’s common stock, par value $0.0001 ( the “ Common Stock ”), at an exercise price of $0.15 per share (the “ Series A Initial Exercise Price ”), and (iii) warrants (the “ Series B Warrants ” and together with the Series A Warrants, the “ Warrants ”) to acquire 16,666,650 shares of Common Stock at an exercise price of $0.0001 per share (the “ Series B Initial Exercise Price ”). As a condition to Purchaser entering into the Purchase Agreement, the Company entered into a Security Agreement (the “ Security Agreement ”) in favor of the Purchaser, granting a security interest in substantially all of the property of the Company, whether presently owned or existing or hereafter acquired or coming into existence, including but not limited to, its ownership interests in its subsidiaries, to secure the prompt payment, performance and discharge in full of all of the Company’s obligations under the Debenture. For a description of significant terms of the sale, and related transaction documents, see the discussion under Item 3.02, below, which is incorporated herein by reference.

 

The Company received $2,500,000 in cash from the offering of the securities. The net proceeds of the offering, approximately $2,475,000, will be used by the Company for working capital purposes."

 

 

So they gave Wizard World a 2.5 million loan ( the interest rate is 12% if you read further in the filing). They got two groups of warrants as part of this deal. They can buy 16.66 million shares for 0.15/share with the first group and they get 16.66 million shares for basically nothing with the second group.

 

 

Basically, they got about 24% of the company just to issue the loan. If the stock ever does well, they can get another 15% of the company by buying it at .15/share. Plus, they get their 2.5 million back with 12% interest. If Wizard World doesn't pay them back, it looks like they would be first in line for everything in bankruptcy.

 

It's also a pretty short-term loan. It comes due 12/30/2018.

 

It's a deal that makes payday lending look reasonable.

 

[mysterio]

OP - the insider dealing continues at Wizard:

 

http://www.businesswire.com/news/home/20161205005658/en/Wizard-World-Enters-Definitive-Financing-Agreement-Bristol

 

Stock is down 22% in the face of this news. Spend your cash elsewhere, the insiders are clearly structuring the company's books to cut out everyone else when Wizard inevitably re-organizes in bankruptcy court. Your 10 stacks will turn into $1.75 in a hurry.

 

This is not an endorsement of WIZD at its current level, but insiders often sell for a variety of reasons, including cashing in on shares they have been granted as compensation that they are obligated to hold for a period of time after being granted the options. Options have to mature, and sometimes this explains insider selling.

 

If Bristol is touted as a major shareholder, how would they benefit by seeing their "major position" liquidated? If they didn't want to prop up the company as it currently is, why not have Wizard declare bankruptcy and then swoop in to provide funding for the "new" Wizard?

 

FYI, I still wouldn't buy the stock. Just playing devil's advocate.

 

IMHO, it all depends on what collateral Wizard put up in order to secure this new round of financing. I'd highly doubt it was common stock but rather something that would prove to be relatively "bankruptcy safe". I agree the timing is curious on the surface if some sort of restructuring is imminent, but my assumption is that Kessler knows what he's doing.

 

I watched this happen with KIOR a couple years ago (they were a biofuels company with tech that worked but ultimately couldn't be commercially scaled). Vinod Khosla was their biggest backer, and his final round of capital infusion came with the terms that he'd essentially own the company outright were it to go bankrupt. Sure enough it did, and I'm guessing Khosla owns all the intellectual property and equipment now.

 

My take is that Kessler could be setting up to take over completely and spin the profitable aspects of the business off from the garbage parts, maybe even take profitable Wizard private altogether. We may see something like Wizard Convention Services (profitable) and Wizard We Ain't Got Nothing For You (better off just setting your cash on fire) down the line.

 

It'll be interesting to follow.

 

I just looked at the SEC filing-

 

http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=11719581-968-11614&type=sect&TabIndex=2&companyid=93837&ppu=%252fdefault.aspx%253fcik%253d1162896

 

"Effective December 1, 2016, Wizard World, Inc. (the “ Company ”) entered into a securities purchase agreement (the “ Purchase Agreement ”) with Bristol Investment Fund, Ltd. (the “ Purchaser ”), an entity controlled by the Chairman of the Company’s Board of Directors, for the sale of the Company’s securities, comprised of (i) $2,500,000 of convertible debentures convertible at a price of $0.15 per share (the “ Debenture ”), (ii) warrants (the “ Series A Warrants ”) to acquire 16,666,667 shares of the Company’s common stock, par value $0.0001 ( the “ Common Stock ”), at an exercise price of $0.15 per share (the “ Series A Initial Exercise Price ”), and (iii) warrants (the “ Series B Warrants ” and together with the Series A Warrants, the “ Warrants ”) to acquire 16,666,650 shares of Common Stock at an exercise price of $0.0001 per share (the “ Series B Initial Exercise Price ”). As a condition to Purchaser entering into the Purchase Agreement, the Company entered into a Security Agreement (the “ Security Agreement ”) in favor of the Purchaser, granting a security interest in substantially all of the property of the Company, whether presently owned or existing or hereafter acquired or coming into existence, including but not limited to, its ownership interests in its subsidiaries, to secure the prompt payment, performance and discharge in full of all of the Company’s obligations under the Debenture. For a description of significant terms of the sale, and related transaction documents, see the discussion under Item 3.02, below, which is incorporated herein by reference.

 

The Company received $2,500,000 in cash from the offering of the securities. The net proceeds of the offering, approximately $2,475,000, will be used by the Company for working capital purposes."

 

 

So they gave Wizard World a 2.5 million loan ( the interest rate is 12% if you read further in the filing). They got two groups of warrants as part of this deal. They can buy 16.66 million shares for 0.15/share with the first group and they get 16.66 million shares for basically nothing with the second group.

 

 

Basically, they got about 24% of the company just to issue the loan. If the stock ever does well, they can get another 15% of the company by buying it at .15/share. Plus, they get their 2.5 million back with 12% interest. If Wizard World doesn't pay them back, it looks like they would be first in line for everything in bankruptcy.

 

It's also a pretty short-term loan. It comes due 12/30/2018.

 

It's a deal that makes payday lending look reasonable.

 

If they are already large shareholders, getting another 24% could give them close to a controlling interest in the company. In essence, a takeover.

 

If you are a current shareholder (my brother and I own small stakes for sh*ts and giggles) it could inspire some confidence that this deal is pretty well tied to a rising stock price. There is every reason to grow the stock price to give Bristol incentive to buy more at .15 cents a share (the current level).

[mattn792]

It's a deal that makes payday lending look reasonable.

 

Haha, no doubt!

 

If they are already large shareholders, getting another 24% could give them close to a controlling interest in the company. In essence, a takeover.

 

If you are a current shareholder (my brother and I own small stakes for sh*ts and giggles) it could inspire some confidence that this deal is pretty well tied to a rising stock price. There is every reason to grow the stock price to give Bristol incentive to buy more at .15 cents a share (the current level).

 

Agreed, however Bristol comes out on top either way. I hope the Wizard people can get their (bleep) together, but I'm not at all confident in them. Maybe new ownership is what they really need.

[eewwnuk]

https://www.sec.gov/Archives/edgar/data/1162896/000149315216015631/form8-k.htm

 

here's the filing. company issued $2.5MM of converts priced at 12%. I'm not a convert expert but it looks like an opportunity for the debt holder to grow their equity stake quite a bit with Wizard. opportunity to buy 16mm of class A's for a company that only has 51mm of shares outstanding = buyer has the opportunity to have significant control ontop of their already high stake (close to controlling interest).

 

if you are a short term holder, overall is dilutive to you. longer term and you hope that this cleans up the working capital issue.