Beyond Meat (NASDAQ:BYND) stock price traded ~12% higher to $0.74 per share on Thursday during pre-market hours of trading after it touched its all-time low of $0.67 the previous day.
The stock collapsed sharply following the announcement and early settlement of a debt exchange deal that significantly dilutes existing shareholders and increases the company’s debt burden.
El Segundo, California-based Beyond Meat (NASDAQ:BYND) said on Monday that most of the holders of its convertible notes had agreed to a plan to help the company reduce its debt load by $800 million and extend the time until that debt matures. Under the plan, Beyond Meat exchanged debt due in 2027 for $202.5 million in debt maturing in 2030.
The company’s (BYND) net revenue was down 15% in the first six months of this year.
SA Quant rating system gives the stock a Strong Sell rating, with the lowest factor grades assigned to profitability and momentum.
Read more contributor comments on its debt exchange, “As a long-term bear on Beyond Meat, Inc., I view the latest debt-for-equity swap as a catastrophic event for shareholders.”