Blum Holdings Inc (BLMH)

[britto106]

I don't buy it. But I will bite. Surely "Billionaire Bob" will want those favorable terms and those will include a bunch of those B shares. So I don't see how 'Billionaire Bob" does anything to increase shareholder value, he destroys it! Blum Oak just got 24 mil B shares on top of the 106 million common and the 2.5 mil in cash. What is Billionaire Bob going to get for 25% of the company?

The amount of revenue and ultimately profits that would have to be added to offset the dilution from the deal and RS to common shareholders would be astronomical.

Do you think "Billionaire Bob" is going to be announced ahead of time and before they do the RS? IMHO Not a chance! If it ever happened it will be announced after the deal is done and after market hours and the RS will be in affect the next morning. So shareholders will not get a pop ahead of time to run for exits before the carnage to the share price post split.

A white night riding in with a pile of cash to expand and do x y and z sounds great until you run some numbers and realize none of it will matter and benefit the common shareholders because they will have been diluted to death in the process!