Shares of Beyond Meat Inc (NASDAQ:BYND) are falling Monday after the plant-based meat company announced a debt restructuring move that will significantly dilute its shareholders.
What To Know: Beyond Meat said nearly all creditors accepted a debt swap of 0% convertible notes due in 2027 for 7% convertible notes due in 2030, plus new shares of common stock. The company said it will issue up to 326 million shares of new common stock under the plan.
Beyond Meat shares were cut in half on Monday as shareholders digested the move, which will see the company delay a large portion of its debt repayment and take on a higher interest rate.
Beyond Meat shares experienced a similar drop last month when the company first announced the debt restructuring plan, which aims to eliminate over $800 million in debt.
Beyond Meat President and CEO Ethan Brown said the most recent move marks a meaningful next step towards the company’s goal of reducing leverage and extending debt maturity.
The Los Angeles-based company last reported earnings in August, showing a 19.6% decrease in net revenue, which totaled $75 million in the quarter. Beyond Meat also reported $34.9 in losses from operations. Brown said the company was disappointed with its second-quarter results, and attributed the poor performance to weakness in the plant-based meat market.
Beyond Meat is due to report earnings for the third quarter at the beginning of November, according to Benzinga Pro.
BYND Price Action: Shares of Beyond Meat were down 45.28% at $1.10 at the time of publication on Monday, according to Benzinga Pro.
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Image: courtesy of Beyond Meat.
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