When are the convertible notes scheduled to convert, and what upside or downside could this conversion present for current shareholders?

Timing of the conversion

The press release does not disclose the exact conversion date, but senior convertible notes are typically structured with a single conversion window that opens at or near maturity – most often 12 months after issuance, with a possible early‑conversion election after a 6‑month lock‑up. In the filing accompanying the private placement (the 8‑K you’ll see on the SEC site), you’ll likely find a maturity date in the range of Sept‑2026 with a conversion right that can be exercised by the noteholder any time after the 12‑month anniversary, subject to any “optional conversion” provisions tied to a trigger price.

Potential upside/downside for existing shareholders

- Upside: If the conversion price is set at a premium to today’s market level (common in early‑stage, high‑growth companies), the notes will only convert if BGL’s share price climbs above that threshold. In that scenario the conversion brings in additional equity capital without forcing the company to raise cash at a discount, and it signals confidence from the accredited investor – a bullish cue for the market.

- Downside: Conversely, any conversion – even at a modest premium – will increase the share count and dilute existing holders. If the conversion price is close to or below the current trading price, the market may price in that dilution immediately, pushing the stock lower. Moreover, the $5 M of notes adds a fixed‑rate debt burden until conversion; if the company’s cash‑flow outlook weakens, the conversion could be seen as a forced equity raise, further weighing on sentiment.

Trading implications

Monitor the SEC filing for the precise conversion mechanics (maturity, conversion price, optional‑conversion triggers). If the conversion price sits at a clear premium, consider a long position or a “buy‑the‑rumor” play, but keep a modest stop‑loss in case the premium is eroded by broader market moves. If the price is at or near parity with the current market, the risk of dilution is higher – a short‑against‑the‑box or a protective put could hedge against an upcoming conversion‑driven sell‑off. In either case, the $75 M equity line of credit adds liquidity, so watch for any draw‑down that might signal the company is leaning on the convertible notes as a bridge to equity financing.