Beyond Meat's "meat" plant-based burger.
Source: Beyond Burger
Shares of Beyond Meat fell more than 9% in premarket trading on Thursday after the company announced Wednesday afternoon that it priced its secondary stock offering at $ 160, six times the price of the IPO.
The stock price is 18.6% off the closing price of the stock. The plant-based meat producer plans to sell 3.25 million additional shares of the 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 production to meet the strong demand for its products and the market itself.
Since the initial public offer of $ 25 per share in May, investor optimism along with those who want to bet against the company has sent its stock sharply. Last week, the stock was a high of $ 208.48, up 720% since the IPO.
than 1[ads1]3% in extended trade. The company is valued at $ 11.8 billion.
Meat alternatives have experienced a growing popularity among consumers who wish to reduce meat intake for health and environmental reasons. Both Beyond Meat and Tear Impossible Foods have signed new deals with restaurants looking to add these foods to the menus.
Burger King said Thursday it will expand the use of the vegan Impossible Whopper to stores across the country. It also plans to start competing with Beyond Meat in the grocery store, starting in September.
Beyond has its own partnerships with chains including Tim Horton, which, like Burger King, is owned by Restaurant Brands International and Dunkin & # 39 ;.