BlackBerry, raising $605 million from Fairfax!
BlackBerry, raising $605 million from Fairfax!

BlackBerry, raising $605 million from Fairfax!

It is recently unveiled that BlackBerry would raise about $605 million by selling convertible debentures to shareholder Fairfax Financial Holdings Ltd and other investors.

On Friday, it was rolled out that the company will also review $1.25 billion worth of outstanding debentures on September 2 along with a coupon of 6 percent it carries. The new debt issuance which is being planned by BlackBerry will include a coupon of 3.75 percent and will arrive by November 2020.

But the company said that it will be about 11.57 percent of BlackBerry’s outstanding shares, once all of the new debt is converted into stock. And according to Reuters data, FairFax is the second largest shareholder of BlackBerry with a stake of about 8.9 percent.

BlackBerry, which was once a dominant force in the smartphones, is just now maintaining a sliver of the global market. However, it came from BlackBerry that bringing of the Classic model would be stopped because of raising doubts in the future business of the company as it is going to focus on software making.

Moreover, a second Android-based handset was introduced by the company in July this year, which combines Alphabet Inc’s popular software and broad app catalog with its security and productivity features at a lower price. John Chen, who is the Chief Executive of BlackBerry, confidently expressed that the company’s trimmed-down handset business can meet its September target which will turn profitable.

Nevertheless, an urge came from analysts that aimed at selling or shutting down of the unit by the company.

About Munawar Gul

Munawar Gul
I'm a Tech geek who loves everything about Technology.

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