"If the price is 10c when BEPPA is converted, the target price goes from 38c to 8.7c because you will need 8 BILLION new shares to be issued to satisfy the BEPPA liability. 8 billion shares would cause the current shares on issue to climb to 10.5bn, which means current shares own 23% than they did pre-dilution."
Favro - wouldn't the NTA per share still be 17c at a 10c conversion price? The $818m BEPPA hybrid debt would now be cleared so equity value would be $1,809m. Dividing by 10.5bn shares = 17c. Or have I msunderstood something? Nice spreadsheet btw.
BBI Price at posting:
7.6¢ Sentiment: Buy Disclosure: Held
