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Beyond Meat Completes Secondary Offering At Massive Discount

Courtesy of ZeroHedge. View original post here.

Beyond Meat shares are trading down notably in the after-hours following a Bloomberg report that, according to a person familiar with the matter, BYND and its inside shareholders priced a secondary offering at $160 per share – a dramatic 18.6% discount to tonight's close.

Official Statement:

Beyond Meat, Inc. (NASDAQ: BYND) (“Beyond Meat”), a leader in plant-based meat, today announced the pricing of an underwritten public offering of 3,250,000 shares of its common stock at a price to the public of $160.00 per share.

Of the shares being offered, 250,000 are being offered by Beyond Meat and the remaining 3,000,000 shares are being offered by existing stockholders.

Certain of such existing stockholders have granted the underwriters a 30-day option to purchase up to an additional 487,500 shares of common stock at the public offering price. The gross proceeds to Beyond Meat from the offering, before underwriting discounts and commissions and offering costs, are expected to be $40.0 million.  Beyond Meat intends to use the net proceeds received by it from the offering (i) to continue to increase its production and supply capabilities, (ii) to pay for marketing and promotional activities, and (iii) for general working capital purposes.

The offering is expected to close on or about August 5, 2019, subject to satisfaction of customary closing conditions.  Beyond Meat will not receive any proceeds from the sale of common stock offered by the existing stockholders.

BYND is trading down after-hours…

The transaction lets early investors such as Kleiner Perkins and Obvious Ventures and executives including Chief Executive Officer Ethan Brown take profits on a small portion of their stakes after an almost eight-fold gain since the stock’s debut.

The question is, does that $160 secondary level act as a floor? Or will it be the critical threshold for shorts to test?

Finally, for those considering shorting this fake meat farce, don't forget that BYND is still the most-expensive short in the market. As Bloomberg reports, according to July 30 datafrom financial analytics firm S3 Partners, the last transaction went off at 197%.

There is one silver lining for shorts – the secondary offering will likely release some more shares to borrow on to the market and may, somewhat ironically, lower carry costs.


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