Apr. 2 at 11:48 AM
$FBIO,
$FBIOP quick clarification on FBIOP dividends since there’s a lot of confusion: The Series A Preferred is cumulative, so unpaid dividends accrue over time and must eventually be paid. Importantly, there is no indication in the prospectus that dividends can be paid in stock (no PIK language). The terms consistently refer to “accrued and unpaid dividends” and redemption is defined as
$25 + accrued dividends in cash. That strongly implies: Dividends are intended to be paid in cash, not shares There is no automatic mechanism of payment in FBIO stock that means no expected dillution.
