The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
Blue Apron Inc fell to a fresh low after the ailing meal-kit delivery platform said it may offer up to $30 million in new shares.
The at-the-market offering would further erode the value of existing shares, which have lost more than 80% of their value this year.
The stock falls 33% to $1.17. Blue Apron said its filing for the offering doesn’t necessarily mean a sale will take place.
An at-the-market offering, unlike a traditional stock offering, caters mostly to institutional investors, allowing companies to sell shares directly into the open market where retail traders are more often on the other end of the trade.
Earlier this week, the New York-based company withdrew its forecast because it hasn’t received $56.5 million in funding it expected from affiliates of one of its top investors.
Blue Apron had said that without funds or relief from its lenders, it would likely breach its minimum-liquidity covenant as soon as this month.