IMHO, there is going to be a *lot* of new stock issued. If they need $600m (Oct debt, SPARCS & Feb Debt) with a current market cap of $197m, and a reasonable discount, seems like a 4:1 dilution.
How much the cornerstone investor provides, and how much is offerred to institutions and existing holders is the big question.
Whichever way it is structured, that is massive dilution - but still great benefit to BBI holders longer term.
I am picking an issue price of 7c. And a share price of 8 cents one week from now. It will be a wild ride in the mean time.
BBI Price at posting:
7.8¢ Sentiment: Buy Disclosure: Held
