Beyond Meat shares tank after announcing secondary offering
Shares of Beyond Meat (BYND) tanked in extended trading, after the alternative meat-maker announced that it would be selling an additional 3.25 million shares of common stock.
Three million of these shares are held by current stockholders, and 250,000 shares will be newly issued and are set to trade on August 1.
Beyond announced the secondary offering shortly after reporting second-quarter financial results. This move allows current shareholders to cash out ahead of the typical lock-up period expiration date.
When asked by analysts for more information on the secondary offering, Beyond CFO said that they would not answer any more questions due to regulatory requirements. Analysts were urged to check the S-1 filing.
GoPro (GPRO) was another company in recent history that held a secondary offering, which allowed insiders to sell shares one month ahead of the lock-up expiration in December 2014. Shares of GoPro have tumbled 92.9% since it filed for its secondary offering on November 10, 2014, which was 3.5 months after its IPO.
Beyond shares have been on a tear since its public debut in May. The stock soared more than 789% as of Monday’s close, after pricing at $25 per share. The stock dipped 12% as of 5:05 p.m. ET.
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Heidi Chung is a reporter at Yahoo Finance. Follow her on Twitter: @heidi_chung.
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