BayFirst Finalizes $80M Preferred Conversion, Granting Lehman a 42% Stake and Board Seat

summarizeSummary

BayFirst Financial completed its $80 million preferred stock conversion, handing Kenneth Lehman 42.38% of common stock and a board seat. Authorized shares were raised to 100 million, paving the way for further dilution.

check_boxKey Events · Financing and Capital Events · BAFN

• Preferred Conversion Executed

  The exchange of 4,000 Series E preferred shares for 11,428,000 common shares gives Kenneth Lehman a controlling 42.38% stake.

• Massive Dilution

  Outstanding common shares balloon from roughly 4.1 million to about 15.5 million, diluting existing holders by approximately 73%.

• Authorized Shares Surge

  Shareholders approved an increase in authorized common stock from 15 million to 100 million, creating ample room for future capital raises.

• Board Control Shift

  Lehman secures the right to appoint a director and plans to serve on both the company and bank boards, tightening his grip on governance.

auto_awesomeAnalysis · BAFN · Finance

By converting $80 million of deeply discounted preferred stock into 11.4 million common shares, Kenneth Lehman now commands a 42.38% stake, massively diluting existing shareholders. The simultaneous increase in authorized shares to 100 million cements his influence and underscores the company's urgent need for capital after recent losses and a $40 million asset resolution charge.