Some people bought on Friday. Why are they buying?
If CI comes in with $1.5b for shares at 5 cents, about 30 billion shares will be issued. That shaves over 90% value off current ords.
That leaves an approximate NAV of 6.6 cents or less ($0.66 times 10%). If BEPPA are converted prior to CI allotment and with $1 worth of ords they will be worth 10 cents after CI allotment. Under present circumstances, there will be no window for BEPPA holders to sell their common between conversion and allotment to CI.
The CI gets an immediate write-up in relation to BEPPA and similarly with SPARCS.
My posts are opinion and speculation only. Under no circumstances should you rely upon them.
BBI Price at posting:
6.1¢ Sentiment: None Disclosure: Held
