Kenneth R. Lehman Acquires 42.4% Stake in BayFirst Financial Corp via Preferred Stock Exchange

Kenneth R. Lehman filed a Schedule 13D on July 16, 2026, reporting a significant 42.4% ownership stake in BayFirst Financial Corp. (BAFN). Lehman acquired 11,500,000 shares of common stock on July 14, 2026, through the exchange of 4,000 shares of Series E Mandatorily Convertible Cumulative Perpetual Preferred Stock. These preferred shares were originally purchased on April 28, 2026, using personal and Roth IRA funds. Lehman's investment is positioned as a strategic move; he intends to join the Board of Directors of both the Company and its subsidiary, BayFirst National Bank. Under the terms of the Securities Purchase Agreement, Lehman is entitled to designate one board member and holds gross-up rights to maintain his proportionate ownership in future equity issuances. Additionally, Lehman and the bank are collaborating on an asset resolution plan to accelerate the bank's work-out strategy for specific assets. The filing includes a Registration Rights Agreement to facilitate the future resale of these shares. Lehman intends to continuously review his investment and may adjust his holdings based on market conditions and company performance.