Bed Bath & Beyond Inc.’s (NASDAQ:BBBY) Drops on Files A Shelf Registration to Sell Common Stock

Shares of Bed Bath & Beyond Inc.’s (NASDAQ:BBBY) plunged over 17.2% in pre trading session on Wednesday  after a Bed Bath & Beyond Inc. filed a shelf registration to sell common stock, but has not yet decided the number of shares to sell. Just before the home goods retailer’s strategy update, the filing was made. The business stated in the filing that it “may from time to time offer, issue, and sell shares of our common stock.” As of May 28, the corporation has 79.96 million shares in circulation.

The ailing retailer’s solid strategic update this week has raised expectations that it is getting close to a $400 million finance agreement. Early trading saw a 6% increase in its stock, bringing the two-session gain to approximately 30% since the firm reiterated that it will have a conference call to give a business and strategy update on August 31.

Last week, Reuters cited a source to claim that Bed Bath & Beyond and investment group Sixth Street were close to finalizing terms for a loan worth around $370 million. The head of investment at Interactive Investor, Victoria Scholar said on Tuesday that investors are optimistic that it could be set to release a $400 million loan deal.

The company’s share price has been maintained despite the fact that its fundamentals are still unstable. As of May’s end, Bed Bath & Beyond had only $107.5 million in cash and $1.38 billion in long-term debt.

One of the most significant aspects of the update, according to Morgan Stanley’s note to clients, is the amount of possible finance Bed Bath & Beyond has attained as well as backing from its suppliers. According to Fidelity Research, Bed Bath & Beyond is the stock that individual investors order the most.

After rising roughly 180% in August following a surge and u-turn brought on by billionaire Ryan Cohen selling his 9.8% ownership, the “meme” stock is on course for its biggest month since its founding in 1992. The company is showing little sign of shedding its meme stock skin despite the rollercoaster ride shares have been on in the past month, said Susannah Streeter, senior markets analyst at Hargreaves Lansdown.

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