, is running out of money. Its cash balances are dropping, an unnamed stockholder had to give it a $4-million loan earlier this month, and the company warns in its latest financial report that if it doesn’t secure new financing, it’s reasonable to doubt its ability to continue.– and its shareholders – greenlit a plan this summer to forgive a $2-million loan to its founder and chief executive officer, Shahrzad Rafati.
Public investors are acting accordingly: The company, valued at more than $300-million at its $16-a-share IPO price, is now worth about $6-million at recent trades of about 30 cents a share. Documents filed by BBTV in June reveal the board hatched a plan as early as Nov. 12, 2020 – two weeks after the IPO – to approve a loan to Ms. Rafati in the event her margin loan was ever called. In a margin call, the shares bought with the loan have fallen so much that they are below the value the lender requires as collateral.
In its securities filings, BBTV said its board “felt that it was a fair and just approach to supporting the CEO to settle her company loans without significant adverse tax consequences. This was always described as the ‘right thing to do’ in the discussions amongst the Board to support its CEO.” Ms.
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