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Mar 21, 2023 10:04PM ET
I will be buying alot more next week MM
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Bed, Bath & Beyond's stock under $1, snarling additional funding
Published Mar 21, 2023 12:45PM ET
Updated Mar 21, 2023 12:50PM ET
© Reuters. FILE PHOTO: A shopping cart is seen at a Bed Bath & Beyond store in Manhattan, New York City, U.S., June 29, 2022. REUTERS/Andrew Kelly
By Caroline Valetkevitch and Lance Tupper
NEW YORK (Reuters) - Shares of Bed Bath & Beyond Inc (NASDAQ:BBBY) edged higher in midday trading Tuesday but the stock remained under $1, leaving the home goods retailer at risk of losing additional funding from hedge fund Hudson (NYSE:HUD) Bay Capital Management, a pivotal investor.
Bed Bath & Beyond's stock dropped 21% on Monday to end at 81 cents after the company late Friday said it was seeking shareholder approval for a reverse stock split. After midday Tuesday, it was up 1% at 82 cents.
The company also reported late Friday shares outstanding as of March 15 of about 335 million, compared with 117 million reported in late January.
The struggling retailer reached an amended agreement with Hudson last week to temporarily lower the stock price threshold to $1 until April 3.
That level is down from an original threshold of at least $1.25, with the amendment aimed at allowing for up to $100 million additional funding in April 2023.
Bed Bath & Beyond last month said it was planning to raise some $1 billion through a complex offering of preferred stock and warrants in an effort to avoid bankruptcy.
"They were extended a lifeline," but its corporate bond levels are still showing signs of distress, said Jake Dollarhide, CEO of Longbow Asset Management in Tulsa, Oklahoma.
"On January 31st, they were priced for immediate bankruptcy and now they're trading at 29 cents on the dollar," he said. "But any time bonds are trading below 50 cents on the dollar, there's always uncertainty involved."
The stock is down about 67% for the year to date, and on Monday its shares were officially removed from the S&P 600 index of small capitalization stocks.
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Comments (3)
Mar 21, 2023 10:03PM ET
bbby is a cool place. better than getting your stuff stolen from your porch by shit heads
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Wa Ga
Mar 21, 2023 3:27PM ET
enough Money, time to do something for shareholders, or we vote No on RS
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