Meat alternatives company Beyond Meat Inc said on Wednesday a secondary offering of 3.25 million new shares would be priced at $160 per share, an 18.6% discount to the stock’s closing price.
With the new offering, of which 250,000 shares are being offered by the company, Beyond Meat is looking to raise $40 million in new capital to expand manufacturing facilities and pay for marketing investments.
The sale came just three months after the company went public and sent Beyond Meat’s shares tumbling over 12% went it was announced on Monday.
The El Segundo, California-based company’s shares have surged nearly 690% since its May IPO as the company’s meat alternatives gained a place on the menus of restaurants such as Carl’s Jr and hit the shelves of grocers, including Kroger Co.
Shares of Beyond Meat, known for its plant-based burgers and sausages, fell 6.2% to $184.27 in extended trading on Wednesday.
The company said some of the selling stockholders have granted the underwriters a 30-day option to purchase up to an additional 487,500 shares at the public offering price.
Goldman Sachs & Co. LLC, J.P. Morgan and Credit Suisse are serving as lead book-running managers for the offering, expected to close on or about Aug. 5.