What In The World Is Going On With Bed Bath & Beyond Shares?

Bed Bath & Beyond Inc BBBY shares are trading lower by 40.78% to $3.47 Tuesday morning after the company on Monday announced a proposed $225 million offering of Series A Convertible Preferred Stock and warrants.

What Happened?

Bed Bath & Beyond says the company expects to receive gross proceeds of approximately $225 million in the offering together with an additional approximately $800 million of gross proceeds through the issuance of securities requiring the holder thereof to exercise warrants to purchase shares of Series A Preferred Stock in future installments assuming certain condition are met.

However, Bed Bath & Beyond says the company cannot give any assurances that it will receive all of the installment proceeds of the offering.

The company intends to use the net proceeds from the initial closing of the offering to repay a number of outstanding loans.

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What Else?

Bed Bath & Beyond shares have seen marked, continued volatility throughout 2023 as the company considers strategic alternatives, including potential bankruptcy.

According to data from Benzinga Pro, BBBY stock has a total share float of 65.6 million, of which 38.55 million shares are sold short, representing 58.77% of shares sold short.

2023 has been a rollercoaster year for shares of the domestic merchandise retailer: amid short squeeze volatility and bankruptcy concerns, and during Monday's short squeeze before the offering announcement, BBBY had jumped a massive 318.31% in the trailing month.

According to data from Benzinga Pro, BBBY has a 52-week high of $30.06 and a 52-week low of $1.27.