Blue Apron (APRN) shares slumped on Wednesday after the meal-kit provider priced a $20 million share offering.
It’s a public offering of 4.7 million Class A common shares at $4.25 apiece.
Secondary offerings often hurt issuers' stock prices because the offerings dilute current holders’ stakes.
Blue Apron recently traded at $4.51, down 19% from Tuesday's close at $5.53. The stock had fallen 13% in the six months through Tuesday. It was above $11 in late January.
The underwriters have an option on almost 706,000 more shares.
All the shares in the offering will be sold by Blue Apron. The offering is expected to close around June 18.
In other food news, Del Taco Restaurants (TACO) and B&G Foods (BGS) have joined the meme stock club, rising in recent days amid large numbers of mentions for both companies on Reddit’s WallStreetBets's message board.
TheStreet.com Founder Jim Cramer isn’t so impressed with B&G. “B&G Food --reasoning from the memes is ill-advised,” he tweeted Tuesday. “The lack of knowledge is really extraordinary. But it is hysterical.”
The downgrade came after the Reddit crowd helped push the stock past $29 on June 8. The stock then fell to $24.14 at Friday’s close, making Sanderson more comfortable with recommending it again. It recently traded at $23.68, down 0.2%.
Cramer said last Tuesday that while the Wendy’s rally would likely be short-lived, he likes the name.