BranchOut Food Prices $5.0M Offering at $1.70, a Discount to the $1.74 Last Price
BOF is trading near its 52-week low of $1.77 (1.7% below the low) on elevated volume (4.3× avg).
Summary
BranchOut priced a $5.0 million underwritten offering of 2,941,177 shares at $1.70, below the $1.74 last price and far below the $3.40 it got in August. That is roughly double the $2.5 million raised two months ago, and it comes one day after preliminary Q3 revenue of about $1 million badly missed the $1.75 million consensus. The company is burning cash and going back to the market at a lower price each time, so expect the stock to trade toward the $1.70 deal price. Lake Street is lead underwriter with a 30-day option for up to 15% more shares; the deal is expected to close on or about October 26. Proceeds go to working capital and general corporate purposes, not to a specific growth project.
At the time of this announcement, BOF was trading at $1.74 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $32.8M. The 52-week trading range was $1.77 to $5.25. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: GlobeNewswire.