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.
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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