Beyond Meat shares fall after pricing secondary stock offering at $160

  • Beyond Meat announced Wednesday it priced its secondary stock offering at $160, six times the price of its IPO.
  • The share price is an 18.6% discount from the stock’s closing price on Wednesday.
  • Shares of the plant-based meat maker fell in premarket trading Thursday.

Shares of Beyond Meat fell more than 9% in premarket trading Thursday after the company announced Wednesday afternoon that it priced its secondary stock offering at $160, six times the price of its IPO.

The share price is an 18.6% discount from the stock’s closing price. The plant-based meat maker plans to sell 3.25 million additional shares of its stock, with 3 million coming from investors and 250,000 from the company, according to a press release.

The company said it wanted to raise $40 million to expand its manufacturing to meet the robust demand for its products and the market itself.

Since its initial public offering of $25 a share in May, optimism from investors along with those looking to bet against the company have sent its stock soaring. Last week, shares hit an all-time high of $208.48, up 720% since the IPO.

But the hot streak snapped Monday, after the company posted mixed second-quarter earnings and announced the stock offering,sending its shares plunging more than 13% in extended trading. The company is valued at $11.8 billion.

Meat alternatives have experienced rising popularity among consumers looking to reduce their meat intake for health and environmental reasons. Both Beyond Meat and rive Impossible Foods have been signing new deals with restaurants looking to add these foods to menus.

Burger King said Thursday it would expand its use of the vegan Impossible Whopper to stores nationwide. It also plans to begin competing with Beyond Meat in the grocery store, starting in September.

Beyond has its own partnerships with chains including Tim Horton’s, which like Burger King is owned by Restaurant Brands International, and Dunkin’.

Source: CBNC



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