New York, Jan 21, 2026, 09:15 EST — Premarket
- Shares of BigBear.ai (BBAI) slipped 3.1% in premarket action, dropping to $5.94
- Shareholders must cast their votes by Jan. 21 ahead of the reconvened meeting on Jan. 22, which will address a proposal to authorize new shares
- A law firm announced it is looking into possible claims for BigBear.ai investors
Shares of BigBear.ai Holdings slipped 3.1% to $5.94 in premarket Wednesday, dragging through a volatile run. The AI and defense contractor faces a looming shareholder vote deadline, while fresh legal issues have come back into focus.
The company wants investors to approve an amendment increasing its authorized common stock from 500 million to 1 billion shares. This will be decided at a reconvened special meeting Thursday at 3:00 p.m. Eastern. Electronic voting is open until 11:59 p.m. Eastern on Wednesday, per a proxy filing. (BigBear.ai Holdings, Inc.)
Why this matters now: “authorized shares” sets the legal maximum a company can issue, as defined in its charter. Increasing this limit lets management finance acquisitions, compensate employees with stock, or generate cash — but it also stokes fears of dilution if those shares eventually enter the market.
Chief Executive Kevin McAleenan told shareholders the company is running low on available shares and urged a “FOR” vote. He stressed that approval “would not result in the immediate issuance of new shares.” McAleenan also noted that proxy advisory firms ISS and Glass Lewis have backed the proposal. (Bigbear)
Chief Financial Officer Sean Ricker said earlier this month the company was “97% of the way” to securing the votes it needs and added that “very few shares remain” under the current authorization. (Bigbear)
On Tuesday, Pomerantz LLP announced it is probing claims for BigBear.ai investors, questioning whether the company or some officers and directors engaged in securities fraud or other illegal actions. Their statement referenced a Jan. 7 downgrade from Cantor analysts, which highlighted concerns including “lumpy” government contracts. (GlobeNewswire)
BigBear.ai has been untangling its capital structure tied to convertible debt. On Jan. 14, the company announced that all $125 million in principal of its 6.00% convertible senior secured notes due 2029 had been converted into common shares. That move wiped out the entire series of those notes and took roughly $125 million of related debt off the books, with no significant cash spent. (Business Wire)
A securities filing dated Jan. 2 detailed how that move would play out, including a notice to redeem the notes and the company’s anticipation that holders would convert ahead of the Jan. 16 redemption deadline. (BigBear.ai Holdings, Inc.)
Traders are focused on Thursday’s vote to see if it lifts the overhang or leaves it intact. Either way, it could set the stage for the stock’s next move, especially since the company has no other major events scheduled this week.
The downside is straightforward. Should the proposal pass, investors might fear the board will exploit the added flexibility to issue more stock, diluting current shareholders. If it doesn’t pass, the company could be stuck with stricter limits on financing and pay plans, possibly forcing another appeal to shareholders down the line.
Thursday brings the reconvened shareholder meeting for Jan. 22, with votes due by 11:59 p.m. ET on Jan. 21. The company is expected to release any follow-up disclosures once the results are in.
