So BLG has raised $2.3m from sophs and the SPP is underwritten to the tune of $3m = $5.3m. That's $5.3m guaranteed and up to $8.3m if the SPP is fully subscribed.
The previous cap raise was structured through the options to allow shareholder's support to be rewarded through an anticipated upturn in SP as expected project revenue progress occurred. That didn't happen, but they think it still will. The first tranche of options are priced at the same price as the placement shares which is a much lower hurdle than last time. They will also bring forward the one-year expiry of the options if they get a $3m+ deal with a tier 1 company. That could be the deal they were hoping would already have been struck by now.
I think there is a very good chance those options will be in the money which means they will raise a further $5.3-8.3m ($10.6-16.6m all up). The 2028 piggyback options will come into play as potential long-term bonus.
So BLG is anywhere from funded to well-funded today. Their revenue/market opportunity is growing, technology improving and products are being "designed in" and qualified by customers. They are in the best position they have ever been.
Only existing shareholders can participate in the SPP. New shareholders have to buy in at market price which will put upward pressure on the SP. Existing shareholders unfortunately have to buy a reasonable percent of their BLG holding to minimise dilution. Funding this may be through selling and buying back through SPP which will put downward pressure on the SP.
This may be one of the best opportunities to invest in BLG. Better than 2020. - OR - NOT!!! DYOR
BLG Price at posting:
1.2¢ Sentiment: Buy Disclosure: Held
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