Shares of the meat maker based on plant products, Beyond Meat, slipped nearly 11% on August 1, just the next day of the company’s pricing of its secondary shares offering worth $160, 6x the value of its Initial Public Offering (IPO).
From Wed’s closing value, the share value is an 18.6% discount. Beyond meat stated that it is planning to sell 3.25 M extra shares of the company’s stock. Around 3 M will be given by investors and the company will add additional 250,000 shares.
To fulfill the strong request for its merchandises, the company indicated that it desires to elevate $40 M for expanding its production.
Since the IPO of $25 per share in the month of May, assurance from investors combined with those wanting to stake against the manufacturer has boosted up its stock to a great deal.
But after Beyond Meat announced assorted 2nd-Q income and made an announcement of offering of the stock, the appealing streak snapped. This sent the company’s shares crashing over 13% in drawn- out trading. The firm is priced at $10.56 BN, and currently is up nearly 600% from the time of its IPO.
The increasing fame and popularity among buyers for the meat alternatives are on a rise as consumers are willing to cut off their meat intake due environmental and health issues. Beyond Meat and its opponent Impossible Foods are accepting new deals with those restaurants which are willing to expand their menus with these foods.
On Thursday, Burger King announced that it would enlarge its usage of the Impossible Whopper which is vegan to eateries nationwide. Beyond Meat will be competing against Impossible Foods even in grocery marts, which are launching in September.
Beyond Meat has struck a deal with food chains counting Tim Hortons, which similar to Burger Kings is retained by RBI (Restaurant Brands International) and Dunkin.
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