The failure to get this SPARCS vote across the line will mean in November either BBI will pay out the SPARCS holders in cash (if they have it), otherwise they will need to dish out shares.
A successful vote puts this potential dilution off for another year. This is a good thing for BBI.
We worked out the other day that this was an extra 700M shares if they do not have the cash. That's a pretty hefty issue of shares.
It may not happen, but it is a big deal if it does. I cannot understand how people can ignore this.
BBI Price at posting:
17.0¢ Sentiment: None Disclosure: Held
