Why Is Branchout Food (BOF) Stock Down 39% Today?

Branchout Food (NASDAQ:BOF) stock is falling on Thursday after the dehydrated fruit and vegetable snacks company priced a public offering for its shares.

This has Branchout Food offering investors 1.75 million shares of BOF stock for 80 cents each. That has the company expecting to raise gross proceedings of $1.4 million from the offering.

Branchout Food already has plans for the money gained from this public offering. The company will use it for working capital and general corporate purposes. That includes operating expenses and capital expenditures.

There’s also a 45-day option for underwriters to acquire another 262,500 shares at the offering price. Alexander Capital LP is the sole bookrunner for the BOF stock offering.

What This Means for BOF Stock

With this comes an increase in the total number of outstanding BOF shares. That will dilute the stakes of current investors in the company. This is one of the reasons why BOF stock is falling today.

On top of that, the 80 cents price for BOF shares is a significant discount. For comparison, the stock closed out Wednesday at $1.31 per share. That’s another reason for shares losing value today.

BOF stock is down 38.9% as of Thursday morning.

Investors will want to keep reading for more of the most recent stock market stories!

We have all of the hottest stock market news available on Thursday! A few examples include what’s going on with shares of Vigil Neuroscience (NASDAQ:VIGL) and Assure (NASDAQ:IONM) stock, as well as the biggest pre-market movers this morning. All of this is available at the links below!

More Thursday Stock Market News

On Penny Stocks and Low-Volume Stocks:With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.

Read More:Penny Stocks – How to Profit Without Getting Scammed

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.