BayFirst Finalizes $80M Preferred Conversion, Granting Lehman a 42% Stake and Board Seat
BAFN sits 36% above its 52-week low of $4.259.
Summary
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.
Key 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.
Analysis · 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.
How filings like this one have moved
In the 30 days to Sep 12, 2026, 42.6% of the 488 measured filings Wiseek scored 9 moved their stock by 5% or more by the next session's close. The median move was -0.42%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, BAFN was trading at $5.79 on NASDAQ in the Finance sector, with a market capitalization of approximately $23.8M. The 52-week trading range was $4.26 to $15.28. This filing was assessed with negative market sentiment and an importance score of 9 out of 10.