BBI was much more complex, but had some really good assets aswell.
I haven't really heard much about a SPP or cornerstone investor on here yet.
If we had a CI take 1,500,000,000 shares for 1,000,000,000 then net assets (inc intangibles) would be 1,944,227,533 with 2,226,328,872 shares on issue. So CI picks up shares at 66cents per share, whilst net assets falls from 1.30 to 87cents per share. This provides the investor with an entry at 25% discount to the current net assets, but with the potential for future gains in addition to strengthening the books and ensuring survival.
Holders from the highs would be aggrieved, as share price falls and upside gets limited, but survival should be a certainty then. Would this pass a vote? Well holders from the lows would all vote yes as they would be in for significant gains, holders from the high may vote yes to ensure they receive something.
We may not have heard of anything like this because management is still confident of getting it all sorted without any dilution.
Just all my random thoughts.
BBP Price at posting:
7.6¢ Sentiment: None Disclosure: Held
