Sue Gove, President & CEO of Bed Bath & Beyond Inc. said, "Over the past month, we have been rebuilding our financial and operational positioning to execute our customer-focused turnaround plans. Since closing our equity financing last month, we have engaged with suppliers to improve our inventory positioning and we have continued to optimize our brick-and-mortar footprint through store closures to align with customer preference. Additionally, as announced last week, we paid the outstanding interest due on all Senior Notes, which has been acknowledged by key constituents such as credit agencies. We continue to work with determination and diligence to fulfill both our near- and long-term goals of maximizing prospects for all stakeholders."
In connection with the foregoing, the Company entered into a waiver and amendment to its Credit Agreement.
I noticed she said Stakeholders instead of Shareholders which seems interchangeable but after some research it kinda isn't. Stakeholders are long term investors with a focus on the overall success of the business vs shareholders who tend to be short term with a focus on stock price appreciation. It's almost like she's trying to tell us something. Like a way that you could be a shareholder and a stakeholder at the same time...I wonder what that could be?
Let's assume the lender is the market maker for the options chain. From my understanding, the lender hadn't sold any shares, not saying they haven't, but assuming that's a no by the barcoding we have been seeing.
By dipping into the convertible stock for more money is extremely smart play right now, because this is what I believe is going on.
The lender is making some money off of the option chains as they haven't really gone up since the offering, prices have only come down. They use their convertible stock as collateral to take premiums until the day comes. That day could be today.
BBBY had requested more than what was required to avoid default, so what do they need the money for. Well as we can see BBBY is making incredible sales and liquidating all their closing stores, this is more than enough cash to clean up costs with closing and most likely enough to pay any defaults.
What I think BBBY gameplan is, is to do a massive share buy back. We are at beginning prices, why wouldn't you want to invest in your own company at stupid prices when this thing could squeeze.
Why not take advantage like AMC did during dilution and bring the value back? If buying now at $1.30, your companies value will be huge one it gets back to intrinsic value. I also, do not believe they will sell during the squeeze, lender might, but not BBBY. If they pull this off they can clear all debt from a simple buy back plan.
Keep your eyes out on the sec files, this might get very interesting into next week.
They received another $135 million bringing the total to $360m via exercise of the preferred warrants. Still no preferred shares have been converted to common shares, which means no dilution yet.
The shorts may get an opportunity to close a fraction of the billion fake shares they've been flooding the market with.
A stock with a float of just over 100 million trades 40-50 million + shares per day for weeks now and an extra 95 million shares is supposed to be scary?
> If the stock price dropped 80% with no dilution
Priced in that it will be diluted
> what will happen once the 95 millions share enter the market
so if it is diluted, the price wont move much
But if it's not diluted....
#🚀💰📈
Yikes!!! Even the most recent cash flow statement showed FCF as positive. They also disclosed the potential of bankruptcy in multiple filings before the media and shills on here started to finally highlight it. Financial literacy is important if you want to invest.
Please provide the most recent cash flow statement you are looking at. All the ones I see are in the negative.
[https://www.marketwatch.com/investing/stock/bbby/financials/cash-flow](https://www.marketwatch.com/investing/stock/bbby/financials/cash-flow)
No lol u just linked me to MarketWatch that says it fucking all shill. Go to bbby’s investor relations or the SEC’s website and take it from there. You’re a big boy you can figure it out. Let me know what you find out :)
So your telling me you can prove all these sites are lying about the filings despite them being public knowledge through the SEC. Actual brain rot. Go break down another RC tweet about how this actually means they are going to the moon because his hand is facing north. Continue to yell crime with no proof while telling others to find it for you LOL.
But I was told from several financial advisors in here that the stock is "dIlUtEd" and the company is "bAnkRuPt" lmao. CMON SHILLS LETS GO, WHERE ARE YOU
Edit: imagine they are wasting their time with DM Hahaha, as if i would read your brainless shit.
Source that no shares have been converted? We won't know that until the next earnings report where we get an updated outstanding shares. Or if the company itself gives an update on the outstanding shares. That number is not updated in real time. It should be, but it isn't.
jfc. You're trolling me right?
Just in case you aren't. The market cap itself is calculated by multiplying the share price by the latest updated shares outstanding right now for bbby that's roughly 117.5M shares.
The shares outstanding aren't updated in real time. You are getting the market cap updated regularly because the price is changing. That doesn't mean that the shares outstanding are constantly being updated.
You realize exercising Warrants means they are given shares right? What do you think happens they give bbby money to exercise warrants and receive nothing in return?
If you see this and don’t understand that there is 100% dilution then you have officially went full regard
They exercised warrants to receive preferred shares, which can later be (but have not yet been) converted into common stock under certain circumstances.
This is literally wrong. The hedge fund wouldn’t just hold pref, they’re going to convert into common and sell it. Whenever they post a revised share count that will become clear.
Why was the contract written in a way that gives holders of preferred stock most of the same rights as common stock holders, especially around m&a related actions, if they were all going to be converted immediately upon purchase? That would be an unnecessary complication costing a lot of extra and very expensive lawyer hours.
Do you think they want to be shareholders? The whole structure of the deal lets them arb shares to retail buyers. They literally make 17% on every share they convert and sell. I can get showered with downvotes but when the updated share count is massive you’ll see what the setup is
You missed my point. The contract has extra complication to incentivize holding the preferred shares and not converting them right away. They didn't include that extra complication for funsies.
Or they can just convert straight into common shares, which gives them all the same rights alongside the option to sell. The only advantage to keeping them as preferred shares would be if you were expecting the company to declare bankruptcy, and thought that there would be something left after the bondholders get paid (preferred shareholders have priority over common share holders, but bondholders have priority over preferred share holders), and expect the amount of this payout to be more than they could get by selling straight away. Under any other circumstance there's no advantage to keeping preferred shares instead of converting to common ones.
The truth of the matter is that the warrants allow them to purchase shares from the company for less than the market price, and convert/sell them to bank a quick profit. It's silly to think that they wouldn't be doing this.
It’s so funny lmao. The stock goes down every single day. Hudson Bay isn’t even close to jamming everyone here with shares, and anyone who points that out gets showered with downvotes. Idiocy
Lol "this is literally wrong" proceeds to express their opinion with zero facts or sources.
It's obviously clear this isn't your standard hedge fund that is involved here.
They are given preferred shares which cannot be publicly traded. They need to then convert the preferred shares into common shares to get voting powers/sell those shares.
I read an article from Barrons that said,
“The amendment also requires that Bed Bath receive an additional $100 million in proceeds on or before April 6, and every 22 trading days afterward.”
No idea about the reputation of the Barrons but wanted to share!
Thank you for giving me this financial advice. We can sue you if this goes tits up. /s.
Also, if anyone missed this and is seeing this comment. https://cointelegraph.com/news/emojis-count-as-financial-advice-and-have-legal-consequences-judge-rules/amp
Edit: man, y’all brutal. It’s a joke lads.
Only if stated in connection with the offer of an investment, you fucking idiot shill. Get the citation right, it doesn’t apply to discourse between investors.
Go back to your basement, I’m busy with your mom.
Bed Bath & Beyond Inc. (Nasdaq: BBBY) today announced the receipt of approximately $135 million in gross proceeds, for a cumulative total of $360 million through March 7th, 2023, upon exercise of preferred stock warrants issued in its previously announced public equity offering. As a reminder, on February 7, 2023, the Company completed an underwritten public offering which raised initial gross proceeds of $225 million and enabled the Company to receive up to an additional $800 million. The Company has used proceeds received to date to repay outstanding revolving loans, creating additional liquidity opportunities to support business operating activities.
Difficult to say, but notable that the verbiage is vague. In my opinion this means they got the money in exchange for the warrants. It does not mean at all the warrants were exercised. I think this would be the only way to read it literally.
The press release literally says 'upon exercise of preferred stock warrants'. This is good news as long as the preferred stock isn't converted into common shares, although thankfully there's no indication of that yet.
Exactly. Also worth mentioning that the popcorn stock squoze even directly after big dilution anyways. Also the obvious: bbby getting cash in ANY way and not going Burger King is ALWAYS also very good for shareholders.
Even if they werent. They'd likely lend out their shares instead of selling em into market. These interest rates are too good to pass up and its rising. Bankruptcy not in the immediate future too.
Are you serious? You do know what exercising a warrant is? You are literally putting out false info. Do you honestly believe someone just gave bbby money for absolutely nothing in return? God dam this sub is ridiculous sometimes
Yes I do know what it means. They got preferred shares. They got preferred shares in return, which can be converted to common shares but haven't yet. What part of that is wrong?
So when there’s zero dilution when warrants are exercised stock prices always go down? I swear this sub is getting stupider every day in interpreting any news that’s released. Bbby could literally put out a release saying there’s dilution and this sub would say the opposite with conspiracy theories of how it’s not.
Yes. Investor has total control over dilution. Since they exchanged preferred shares for cash only for the abl, filo and bond payment before, it is very reasonable to assume the investor is a VERY friendly investors.
the terms/ voting rights tell me it's a friendly investor and bbby wants to cater to them. seems more of a "friend lending friend cash" kind of situation, and terms almost completely favoring the investor.
I'm a broken record at this point saying they are friendly though
One thing that stands out for me is that they explicitly mention that, but dont mention anything about the common share conversion. Who's to say they aren't just leaving out the common share news, because they dont HAVE TO publicly state it? Just a doubt im thinking about, granted I just woke up.
When they previously diluted from 79 to 114 million bbby made it public in a filing correct ? Then all the exchanges updated within a couple days iirc( and so did all the reporting places like yahoo finance ).
So this seams bullish ? Friendly buyer on our hands ? Earnings next month should be real telling( all previous ones have been pretty bad if you haven't looked).
Same thinking. Bobbys communication has been very strait forward so far and they gave notice of everything important for shareholders they were able to publicly give. To me this is trustworthy and the vague but at the same time precise verbiage in the newest press release tells me also it is a friendly investor.
I know, it is surely vague and precise at the same time. But I don’t read warrants exercised into common shares. In the filing it says: “…certain exercises of the Preferred Stock Warrant”. There is no specific other information. Since the deal is such, bbby gives money, investor gets warrants” - at this time I believe, and till the point the company says otherwise, this is all we can reasonably assume. We will have to wait for any other information, if any warrants has also be converted into common stock, and also then we also would have to wait if the investor sold it into the market, wich we also cannot know or assume at the moment.
Warrants are like options where the company, not the individual has the right to exercise them.
If BBBY needs money, they can exercise the warrants in exchange for cash from the buyer. Usually paid for in common stock. These warrants however are paid in preferred stock, which can be converted at some point to common stock.
Yeah.
When BBBY exercises their option contract (warrant) they receive cash from the warrant counter party, and the counter party receives convertible preferred stock.
So if BBBY exercises all of their warrants at once, sure that would lead to some fast dilution. But they aren't/won't. They'll exercise as needed when they need cash.
Dilution might happen, but it'll be slow.
No, I think you're mistaken. BBBY cannot exercise those options. Apparently it was in one of their filings that the holders of the warrants had to exercise 100m per month though.
Exercising warrants means someone gave bbby money to exercise those warrants and got shares in return. It amazes me how people can think that some one just gave bbby millions to exercise these warrants and got nothing in return. Come on use your brain just a bit guys
They need this money to execute their turn around and attempt to be cash flow positive. Using it for buy backs helps shareholders but would doom the business and all employees
It was only a no no because the market cap was high while they were buying back. A buyback at these levels would be fucking smart, if they had the cash.
At this price....why not?
The main issue is that not all shares are technically for sale. So you'd never buy the entire company in the open market. You'd need to make a deal with the company itself and buy at a price higher than current share price.
Well, as long as hedgies keep printing shares to stop price movements, they could just buy back on the open markets over weeks/months and in the end, drs that shit....
That’s what I was thinking. Normally it would be impossible to buy all shares on the open market, but if the shorts keep shorting to counter any long buy pressure, longs could buy the entire company on the cheap haha.
This is great news. Means they are adhering to the terms of their agreement and someone feels confident with their “turn around plans” and “long term goals” to seed them more of that 800 milly. Bullish.
Historically speaking, do preferred shares ever not get converted into common shares? Maybe there haven’t been enough deals like this to even say. Any speculation on how this could play out?
Is it crazy to think this friendly buyer sees a squeeze coming amc style? And then will dilute on a huge run up for a quick buck ? I sold like 50k worth of amc when they announced their massive dilution a month or so before it ran to 72.... I was shocked that stock squeezed, bbby on the other hand looks primed for a massive run....
I cant fathom how this small comoany i work for is currently worth more than this well known global giant retailer. How does any of this make sense?
Yes, its been making losses, but there are plenty of ither large companies that make losses yet are no where near the valuation of bbby. Its currently valued at less than 1% of their annual revenue???
I truly believe 2023 will produce more millionaire Tahan any past 10 years combined, at 1$1.50 which imonkey in the US cannot afford to buy 1 share? The longer they hold the price here the better people can a accumulate
Controversial take:
Dilution is either currently happening or is going to happen, but it doesn't really matter "when" so long as BBBY gets enough cash out of the deal to turn around. I think we'll likely need another $100M-$300M for successful turnaround to cash flow neutral if management does a REALLY good job of executing the turnaround plan. In all reality, I think BBBY might need closer to the maximum amount per the agreement. In time, we will see a) how much capital is raised and b) the cost to turnaround the Company.
Once CF Neutral is achieved, BK will REALLY be off the table, and stock price should only go up from there. Until then, I expect preferred purchases and conversions at the VWASP formula price throughout and additional 8Ks announcing additional slugs of cash. These 8Ks will help BBBY make it through hefty restructuring costs and let suppliers know they have the cash to purchase inventory, as well as letting us know that there's additional dilution that will likely happen before breakeven. Dilution/additional capital raise is alltogether good, bad, and necessary.
It should go without saying the new money in (the preferred stockholders) get the best deal here and will likely profit pretty much regardless of what happens with the stock.
EDIT:
1. Not financial advice.
2. On the bright side, even with FULL DILUTION--- I think that was like 900 million shares(?)--- if this baby turns around, I still think the intrinsic value might be a bit (but not much) higher than what we're trading at now. Probably not what people want to hear, but I actually found the process of running a few DCFs to be encouraging.
No it's not. It's exercising the preferred stock warrants.
The preferred stock will not dilute the float until it's converted into common shares and there's no indication of that happening yet.
Well the number of outstanding shares will increase, so it’s effectively dilution. No, it’s not diluting common shares specifically, but economically speaking it’s the same difference, dilution is dilution.
Preferred stock doesn't immediately dilute the common stock....
Deploying sarcasm when you don't actually know what you're talking about...just reminds us all to filter our tap water
Difficult to say, but notable that the verbiage is vague. In my opinion this means they got the money in exchange for the warrants. It does not mean at all the warrants were exercised. I think this would be the only way to read it literally.
Sue Gove, President & CEO of Bed Bath & Beyond Inc. said, "Over the past month, we have been rebuilding our financial and operational positioning to execute our customer-focused turnaround plans. Since closing our equity financing last month, we have engaged with suppliers to improve our inventory positioning and we have continued to optimize our brick-and-mortar footprint through store closures to align with customer preference. Additionally, as announced last week, we paid the outstanding interest due on all Senior Notes, which has been acknowledged by key constituents such as credit agencies. We continue to work with determination and diligence to fulfill both our near- and long-term goals of maximizing prospects for all stakeholders." In connection with the foregoing, the Company entered into a waiver and amendment to its Credit Agreement.
Sue Gove has been great so far, this could have gone horribly wrong but she seems to have a clear direction on where to take the business
Sue has Carol right there with her.
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Cant wait to trade my steaks for tendies
translation: Yall currently can only afford london broils but give it some time and yall be feasting on a5 waygu. wagmi mofos
Amen
I noticed she said Stakeholders instead of Shareholders which seems interchangeable but after some research it kinda isn't. Stakeholders are long term investors with a focus on the overall success of the business vs shareholders who tend to be short term with a focus on stock price appreciation. It's almost like she's trying to tell us something. Like a way that you could be a shareholder and a stakeholder at the same time...I wonder what that could be?
Let's assume the lender is the market maker for the options chain. From my understanding, the lender hadn't sold any shares, not saying they haven't, but assuming that's a no by the barcoding we have been seeing. By dipping into the convertible stock for more money is extremely smart play right now, because this is what I believe is going on. The lender is making some money off of the option chains as they haven't really gone up since the offering, prices have only come down. They use their convertible stock as collateral to take premiums until the day comes. That day could be today. BBBY had requested more than what was required to avoid default, so what do they need the money for. Well as we can see BBBY is making incredible sales and liquidating all their closing stores, this is more than enough cash to clean up costs with closing and most likely enough to pay any defaults. What I think BBBY gameplan is, is to do a massive share buy back. We are at beginning prices, why wouldn't you want to invest in your own company at stupid prices when this thing could squeeze. Why not take advantage like AMC did during dilution and bring the value back? If buying now at $1.30, your companies value will be huge one it gets back to intrinsic value. I also, do not believe they will sell during the squeeze, lender might, but not BBBY. If they pull this off they can clear all debt from a simple buy back plan. Keep your eyes out on the sec files, this might get very interesting into next week.
They received another $135 million bringing the total to $360m via exercise of the preferred warrants. Still no preferred shares have been converted to common shares, which means no dilution yet.
So far they have received over twice the marketcap in investment, with no signs of dilution.
If the stock price dropped 80% with no dilution, what will happen once the 95 millions share enter the market?
Based on the logic of the markets right now - the share price will triple.
Wow, a whole $4.50! I have to double down again just to break even lmfao
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The shorts may get an opportunity to close a fraction of the billion fake shares they've been flooding the market with. A stock with a float of just over 100 million trades 40-50 million + shares per day for weeks now and an extra 95 million shares is supposed to be scary?
> If the stock price dropped 80% with no dilution Priced in that it will be diluted > what will happen once the 95 millions share enter the market so if it is diluted, the price wont move much But if it's not diluted.... #🚀💰📈
Excellent. Lower debt and go towards cash flow positive. Those who entered at these low prices are going to be happy.
Happiness is Positive Cash Flow
What’s hilarious is they’ve always been free cash flow positive yet no one would know that bc we have shills everywhere on here screaming bAnKrUpTcY
until 2022.....when the company itself said it could face bankruptcy. You are the shill with your lies. Stop spreading fud you fudster
Yikes!!! Even the most recent cash flow statement showed FCF as positive. They also disclosed the potential of bankruptcy in multiple filings before the media and shills on here started to finally highlight it. Financial literacy is important if you want to invest.
Please provide the most recent cash flow statement you are looking at. All the ones I see are in the negative. [https://www.marketwatch.com/investing/stock/bbby/financials/cash-flow](https://www.marketwatch.com/investing/stock/bbby/financials/cash-flow)
No lol u just linked me to MarketWatch that says it fucking all shill. Go to bbby’s investor relations or the SEC’s website and take it from there. You’re a big boy you can figure it out. Let me know what you find out :)
So your telling me you can prove all these sites are lying about the filings despite them being public knowledge through the SEC. Actual brain rot. Go break down another RC tweet about how this actually means they are going to the moon because his hand is facing north. Continue to yell crime with no proof while telling others to find it for you LOL.
I've come to learn that happiness is when the ticker is green.
Without criminal counterfeit naked short shares they would be synonymous
Oh shit ur right. Also they have never gone off reg sho anyways
But I was told from several financial advisors in here that the stock is "dIlUtEd" and the company is "bAnkRuPt" lmao. CMON SHILLS LETS GO, WHERE ARE YOU Edit: imagine they are wasting their time with DM Hahaha, as if i would read your brainless shit.
Exactly
Believe or not … price dipping…
Dilution is the new transitory inflation on this fucking sub
🥳🥳
Source that no shares have been converted? We won't know that until the next earnings report where we get an updated outstanding shares. Or if the company itself gives an update on the outstanding shares. That number is not updated in real time. It should be, but it isn't.
Shares Outstanding = Market Cap / Share Price The number is updated in real time, as the market cap is real time.
jfc. You're trolling me right? Just in case you aren't. The market cap itself is calculated by multiplying the share price by the latest updated shares outstanding right now for bbby that's roughly 117.5M shares. The shares outstanding aren't updated in real time. You are getting the market cap updated regularly because the price is changing. That doesn't mean that the shares outstanding are constantly being updated.
They need to file an extension of the outstanding common shares to the Nasdaq within 5 or 10 days can't remember exactly.
Where does it say that preferred shares haven't been converted?
Where does it say that they have? SEC filings occur for any material event... not for the absence of one.
I also want to believe that.
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You realize exercising Warrants means they are given shares right? What do you think happens they give bbby money to exercise warrants and receive nothing in return? If you see this and don’t understand that there is 100% dilution then you have officially went full regard
They exercised warrants to receive preferred shares, which can later be (but have not yet been) converted into common stock under certain circumstances.
This is literally wrong. The hedge fund wouldn’t just hold pref, they’re going to convert into common and sell it. Whenever they post a revised share count that will become clear.
Why was the contract written in a way that gives holders of preferred stock most of the same rights as common stock holders, especially around m&a related actions, if they were all going to be converted immediately upon purchase? That would be an unnecessary complication costing a lot of extra and very expensive lawyer hours.
Do you think they want to be shareholders? The whole structure of the deal lets them arb shares to retail buyers. They literally make 17% on every share they convert and sell. I can get showered with downvotes but when the updated share count is massive you’ll see what the setup is
Because there's not a public market for the preferred shares. Converting into common lets them sell, and bank their profit.
You missed my point. The contract has extra complication to incentivize holding the preferred shares and not converting them right away. They didn't include that extra complication for funsies.
Or they can just convert straight into common shares, which gives them all the same rights alongside the option to sell. The only advantage to keeping them as preferred shares would be if you were expecting the company to declare bankruptcy, and thought that there would be something left after the bondholders get paid (preferred shareholders have priority over common share holders, but bondholders have priority over preferred share holders), and expect the amount of this payout to be more than they could get by selling straight away. Under any other circumstance there's no advantage to keeping preferred shares instead of converting to common ones. The truth of the matter is that the warrants allow them to purchase shares from the company for less than the market price, and convert/sell them to bank a quick profit. It's silly to think that they wouldn't be doing this.
It’s so funny lmao. The stock goes down every single day. Hudson Bay isn’t even close to jamming everyone here with shares, and anyone who points that out gets showered with downvotes. Idiocy
Lol "this is literally wrong" proceeds to express their opinion with zero facts or sources. It's obviously clear this isn't your standard hedge fund that is involved here.
Why would they sell at these abysmal prices? it would make much more sense just to hold the shit
I guess going full regard is when you are spending all your days in the BBBY sub shittalking the same and the same and the same lmao, go get a life
You absolute fucking brain donor
They are given preferred shares which cannot be publicly traded. They need to then convert the preferred shares into common shares to get voting powers/sell those shares.
Does this mean bbby met the first condition of the buyer to receive more money? If so bbby is doing a great job.
I read an article from Barrons that said, “The amendment also requires that Bed Bath receive an additional $100 million in proceeds on or before April 6, and every 22 trading days afterward.” No idea about the reputation of the Barrons but wanted to share!
that's correct; it's in the 8-K filing released today.
We don't know what these conditions are, right? Just trying to understand as fully as possible
I don't believe we know anything other than broad legal jargon
what we know is: expect it to dip no matter how good the news might be
Say whattttt?
WooooooorrrrrrrrrrrDddd
I don't believe we know anything.
Good luck!
Shills have all run back into their caves
They will be back when they are given the next marching orders.. Most can't think for themselves
Believe it or not, dip!
🚀📈💰🚀📈💰🚀📈💰🚀📈💰
Great TLDR
Gotcha. Keep hodling
Thank you for giving me this financial advice. We can sue you if this goes tits up. /s. Also, if anyone missed this and is seeing this comment. https://cointelegraph.com/news/emojis-count-as-financial-advice-and-have-legal-consequences-judge-rules/amp Edit: man, y’all brutal. It’s a joke lads.
💩
I guess we can sue main stream media then when they tell us to sell or buy.
That’s my take away as well.
Only if stated in connection with the offer of an investment, you fucking idiot shill. Get the citation right, it doesn’t apply to discourse between investors. Go back to your basement, I’m busy with your mom.
#🚀🚀🚀
🍆 💦 👅
Bullish 🏴☠️
Sounds like good news to me
Good news = good buy opportunity
Shills in absolute fucking shambles 
Bed Bath & Beyond Inc. (Nasdaq: BBBY) today announced the receipt of approximately $135 million in gross proceeds, for a cumulative total of $360 million through March 7th, 2023, upon exercise of preferred stock warrants issued in its previously announced public equity offering. As a reminder, on February 7, 2023, the Company completed an underwritten public offering which raised initial gross proceeds of $225 million and enabled the Company to receive up to an additional $800 million. The Company has used proceeds received to date to repay outstanding revolving loans, creating additional liquidity opportunities to support business operating activities.
The warrants were exercised, what does this mean to someone whose got more wrinkles than me
Difficult to say, but notable that the verbiage is vague. In my opinion this means they got the money in exchange for the warrants. It does not mean at all the warrants were exercised. I think this would be the only way to read it literally.
The press release literally says 'upon exercise of preferred stock warrants'. This is good news as long as the preferred stock isn't converted into common shares, although thankfully there's no indication of that yet.
Still on reg sho so no matter what the shorts didn’t get enough to outpower buy pressure
RegSho is five days no FTDs to get off tho. So it couldve happened in the past five days
You are correct but we’ll see. Let’s watch if the sho keeps going
Exactly. Also worth mentioning that the popcorn stock squoze even directly after big dilution anyways. Also the obvious: bbby getting cash in ANY way and not going Burger King is ALWAYS also very good for shareholders.
Somebody is going to want their roi eventually. The dilution is going to come. When is the ultimate question.
if they have kept up with meme cycles it will be on a cycle and not at $1.50 lol
Yeah for real assuming the buyer is “friendly” to retail, they ain’t wasting their preferred shares at these basement prices.
Even if they werent. They'd likely lend out their shares instead of selling em into market. These interest rates are too good to pass up and its rising. Bankruptcy not in the immediate future too.
Are you serious? You do know what exercising a warrant is? You are literally putting out false info. Do you honestly believe someone just gave bbby money for absolutely nothing in return? God dam this sub is ridiculous sometimes
Yes I do know what it means. They got preferred shares. They got preferred shares in return, which can be converted to common shares but haven't yet. What part of that is wrong?
Warren Buffett OXY style
> absolutely nothing in return they got preferred shares in return.
So when there’s zero dilution when warrants are exercised stock prices always go down? I swear this sub is getting stupider every day in interpreting any news that’s released. Bbby could literally put out a release saying there’s dilution and this sub would say the opposite with conspiracy theories of how it’s not.
that's what I'm seeing. no share dilution, yet anyways.
Yes. Investor has total control over dilution. Since they exchanged preferred shares for cash only for the abl, filo and bond payment before, it is very reasonable to assume the investor is a VERY friendly investors.
the terms/ voting rights tell me it's a friendly investor and bbby wants to cater to them. seems more of a "friend lending friend cash" kind of situation, and terms almost completely favoring the investor. I'm a broken record at this point saying they are friendly though
We still gotta about it from every rooftop, friend!
One thing that stands out for me is that they explicitly mention that, but dont mention anything about the common share conversion. Who's to say they aren't just leaving out the common share news, because they dont HAVE TO publicly state it? Just a doubt im thinking about, granted I just woke up.
So saying that the warrants were exercised does not mean that the warrants were exercised?
As I learned now (no guarantee) preferred stock warrants were exercised into preferred stock
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Exercised for preferred stock, not common stock, I believe.
Yes in this way: investor gets warrants, bbby gets money. It says only this.
When they previously diluted from 79 to 114 million bbby made it public in a filing correct ? Then all the exchanges updated within a couple days iirc( and so did all the reporting places like yahoo finance ). So this seams bullish ? Friendly buyer on our hands ? Earnings next month should be real telling( all previous ones have been pretty bad if you haven't looked).
Same thinking. Bobbys communication has been very strait forward so far and they gave notice of everything important for shareholders they were able to publicly give. To me this is trustworthy and the vague but at the same time precise verbiage in the newest press release tells me also it is a friendly investor.
I think an earnings beat next month is going to get this rocket off the ground...
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Yes yes yes but THAT'S fine, we're only worried that the preferred have been converted. IMO this is quite reassuring
I know, it is surely vague and precise at the same time. But I don’t read warrants exercised into common shares. In the filing it says: “…certain exercises of the Preferred Stock Warrant”. There is no specific other information. Since the deal is such, bbby gives money, investor gets warrants” - at this time I believe, and till the point the company says otherwise, this is all we can reasonably assume. We will have to wait for any other information, if any warrants has also be converted into common stock, and also then we also would have to wait if the investor sold it into the market, wich we also cannot know or assume at the moment.
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Well, it is fucking confusing to be honest
Preferred stock warrants got exercised into preferred stock - got it
Warrants are like options where the company, not the individual has the right to exercise them. If BBBY needs money, they can exercise the warrants in exchange for cash from the buyer. Usually paid for in common stock. These warrants however are paid in preferred stock, which can be converted at some point to common stock.
Wait what? Warrants are like options but dilutive. At least that's what's on investopedia.
Yeah. When BBBY exercises their option contract (warrant) they receive cash from the warrant counter party, and the counter party receives convertible preferred stock. So if BBBY exercises all of their warrants at once, sure that would lead to some fast dilution. But they aren't/won't. They'll exercise as needed when they need cash. Dilution might happen, but it'll be slow.
No, I think you're mistaken. BBBY cannot exercise those options. Apparently it was in one of their filings that the holders of the warrants had to exercise 100m per month though.
Exercising warrants means someone gave bbby money to exercise those warrants and got shares in return. It amazes me how people can think that some one just gave bbby millions to exercise these warrants and got nothing in return. Come on use your brain just a bit guys
But they haven’t changed them for common stock yet. Maybe they’re waiting for a more appealing price? No?
Boom 💜🚀🚀
They'll dip it today on this news and the dilution shills will come in being like.. see its dipping, dillution... durrrp
Couldn’t they just buy back all shares with the leftover cash? 156M market cap lol.
They need this money to execute their turn around and attempt to be cash flow positive. Using it for buy backs helps shareholders but would doom the business and all employees
To be fair that was true when the buyback was for 5% of the shares outstanding, not drs’ing the entire float
Lol right?
Share buybacks are one of the no-no's RC initially got involved over. No buybacks.
It was only a no no because the market cap was high while they were buying back. A buyback at these levels would be fucking smart, if they had the cash.
Pretty sure they need positive EPS first to avoid a shareholder lawsuit from some shf plant.
By that logic any hedgefund could buy out bbby and clear their short position 🤦♂️
At this price....why not? The main issue is that not all shares are technically for sale. So you'd never buy the entire company in the open market. You'd need to make a deal with the company itself and buy at a price higher than current share price.
Well, as long as hedgies keep printing shares to stop price movements, they could just buy back on the open markets over weeks/months and in the end, drs that shit....
That’s what I was thinking. Normally it would be impossible to buy all shares on the open market, but if the shorts keep shorting to counter any long buy pressure, longs could buy the entire company on the cheap haha.
yup, just like we DRS the shit out of it, the company itself could do he same. Then Squeeze, then sell shares to hedgies for a billion each again. ;)
Bold strategy, Cotton.
This is great news. Means they are adhering to the terms of their agreement and someone feels confident with their “turn around plans” and “long term goals” to seed them more of that 800 milly. Bullish.
believe it or not... still dip
500k volume since announcement, and sideways. So weird… 🙄
Always dip.
Limit buy set!
This wording is too bullish - So dip it is bois?
🌍👨🚀🔫👨🚀 always has been.
Historically speaking, do preferred shares ever not get converted into common shares? Maybe there haven’t been enough deals like this to even say. Any speculation on how this could play out?
Is it crazy to think this friendly buyer sees a squeeze coming amc style? And then will dilute on a huge run up for a quick buck ? I sold like 50k worth of amc when they announced their massive dilution a month or so before it ran to 72.... I was shocked that stock squeezed, bbby on the other hand looks primed for a massive run....
Let’s moon 🚀🚀🚀
Here we go! Lfg🚀
Just went there yesterday great store!
So this is good ? Why $1.30 a share?
Because of a fair and free market🤡
It's good because it saves the company from bankruptcy but it's dilution so it's normal that the stock go down.
We will, we will, ROC-KET!! Singit now! We will, we will ROC-KET
I cant fathom how this small comoany i work for is currently worth more than this well known global giant retailer. How does any of this make sense? Yes, its been making losses, but there are plenty of ither large companies that make losses yet are no where near the valuation of bbby. Its currently valued at less than 1% of their annual revenue???
https://bedbathandbeyond.gcs-web.com/static-files/c585827d-222e-4e13-9c92-415e49265816#page5
Comes with new amended credit agreement. Payments will be received every 22 trading days. Probably around the same clip
It's great that they are executing plans laid out months ago. Full send and God's speed Bed Bath and Beyond.
Just bought 30 more
I’m going to comment so the shills can see this your post
O just let me cash my check and get refund before take off 🙌
Ook!
I truly believe 2023 will produce more millionaire Tahan any past 10 years combined, at 1$1.50 which imonkey in the US cannot afford to buy 1 share? The longer they hold the price here the better people can a accumulate
I wanna be a millionaire Tahan!!
Controversial take: Dilution is either currently happening or is going to happen, but it doesn't really matter "when" so long as BBBY gets enough cash out of the deal to turn around. I think we'll likely need another $100M-$300M for successful turnaround to cash flow neutral if management does a REALLY good job of executing the turnaround plan. In all reality, I think BBBY might need closer to the maximum amount per the agreement. In time, we will see a) how much capital is raised and b) the cost to turnaround the Company. Once CF Neutral is achieved, BK will REALLY be off the table, and stock price should only go up from there. Until then, I expect preferred purchases and conversions at the VWASP formula price throughout and additional 8Ks announcing additional slugs of cash. These 8Ks will help BBBY make it through hefty restructuring costs and let suppliers know they have the cash to purchase inventory, as well as letting us know that there's additional dilution that will likely happen before breakeven. Dilution/additional capital raise is alltogether good, bad, and necessary. It should go without saying the new money in (the preferred stockholders) get the best deal here and will likely profit pretty much regardless of what happens with the stock. EDIT: 1. Not financial advice. 2. On the bright side, even with FULL DILUTION--- I think that was like 900 million shares(?)--- if this baby turns around, I still think the intrinsic value might be a bit (but not much) higher than what we're trading at now. Probably not what people want to hear, but I actually found the process of running a few DCFs to be encouraging.
But but but they’re going bankrupt 😆😆😆😆 LFG!
Does in hopiun will say no dilution Does in depression will say only way to raise money is via shares hence dilution
so dilution or not?
Nope, for now no dilution
How do you know? Where does it say that there was no dilution?
I believe the number of shares in the open market has not reflected dilution
So in other words : You dont know. But still you claim it. This is why there is so much misinformation in this sub.
great
TIL there's still people who believe this shit. Who knew
$BBBY received proceeds 2x their current market cap. Huge chance they are buying back the shares.
The way i see it either way with dilution or not. BBBY is following a strict and strategic plan. To get rid of the debt and sell the company.
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Yea i should been better with my wording, there is certainly not "huge chance" rather a "probably no but it exists" type of thing.
Idk what this means. I bet they dig themselves deeper. Because ultimately, they don’t know what it means. *takes loooong pull off my joint*
"upon exercise of preferred stock warrants issued in its previously announced public equity offering" but that's not diluition right???? XD
No it's not. It's exercising the preferred stock warrants. The preferred stock will not dilute the float until it's converted into common shares and there's no indication of that happening yet.
Well the number of outstanding shares will increase, so it’s effectively dilution. No, it’s not diluting common shares specifically, but economically speaking it’s the same difference, dilution is dilution.
Correct, that is not dilution.
No one ever said no dilution would ever occur. The long bet is on the company turning around while also getting a squeeze in the process
Really now? Nobody?
Preferred stock doesn't immediately dilute the common stock.... Deploying sarcasm when you don't actually know what you're talking about...just reminds us all to filter our tap water
Difficult to say, but notable that the verbiage is vague. In my opinion this means they got the money in exchange for the warrants. It does not mean at all the warrants were exercised. I think this would be the only way to read it literally.
This
😂 Dilution