BBBY

The embattled retailer will use the proceeds to pay back loans to some creditors. Shares lost about one-third of their value in after-hours trading.

Bed Bath (ticker: BBBY) will be offering shares of Series A convertible preferred stock, warrants to purchase shares of Series A preferred stock, and warrants to buy the company’s common stock. The company is also appointing a new chief financial officer with experience in turning around troubled businesses. Bed Bath & Beyond Plans to Raise More Than $1 Billion Through Equity Offering

A failure to take online shopping seriously harmed the retailer — then product missteps and misguided financial maneuvers hastened its decline.

The stock price of Bed Bath & Beyond Inc (NASDAQ: BBBY) surged 92.1% and then fell 36.9% after hours today. This is why.

Some of the meme stocks include GameStop (GME), AMC Entertainment (AMC), and Bed Bath & Beyond (BBBY). The Company plans to raise approximately $225 million of gross proceeds 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 conditions are met. But then the stock fell 36.9% after hours after the company made an announcement.

Beleaguered retailer Bed Bath Beyond (NASDAQ:BBBY) announced its plan to raise over $1 billion in capital by issuing convertible preferred securities and ...

BBBY shares plunged nearly 32% in Tuesday’s pre-market trading following a [92.1% jump yesterday due to meme stock frenzy](https://www.tipranks.com/stocks/bbby/stock-analysis). [NASDAQ:BBBY](https://www.tipranks.com/stocks/bbby/forecast)) announced its plan to raise over $1 billion in capital by issuing convertible preferred securities and warrants. The The initial proceeds from this offering, coupled with a $100 million additional credit line from lender Sixth Street, would be used to repay outstanding revolving loans due under BBBY’s asset-based loan facility. BBBY is raising capital to avoid possible bankruptcy. [received a default notice from JPMorgan](https://www.tipranks.com/news/bed-bath-beyond-nasdaqbbby-stock-tanks-on-loan-defaults) ( [NYSE:JPM](https://www.tipranks.com/stocks/jpm/forecast)).

Bed Bath & Beyond's massive equity offering dilutes investors tremendously, while a failed offering likely results in bankruptcy.

In the end, this is not a name that investors should try to gamble on, as Monday's news could easily be a short term move to draw out the potential bankruptcy process a little longer. Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. The company could have easily burned through all of that cash, and it still has that roughly $2 billion of debt to deal with. After the bell, the company dropped news of a The company has warned that it will likely file for bankruptcy if the deal does not go through, and there is no guarantee that it will be completed. Over the past few weeks, we've heard more and more about efforts to avoid bankruptcy, such as numerous store closures and failed efforts to [sell some key assets](https://seekingalpha.com/news/3929083-bed-bath-beyond-drops-again-on-report-asset-sale-efforts-are-faltering). [company announced results](https://seekingalpha.com/news/3923269-bed-bath-and-beyond-non-gaap-eps-of-3_65-misses-0_84-revenue-of-1_26b-misses-80m) for its fiscal period ending in late November, and the numbers were terrible to say the least. Management was looking to shore up the balance sheet for a very important holiday sales period, but this was resulting in more and more dilution. The market obviously realizes that this is a Hail Mary effort to avoid bankruptcy in the coming weeks. At that time, a deal to raise up to $150 million was announced, as the company's results continued to worsen. Shares of the company surged during Monday's trade, which resulted in a very interesting announcement after the bell that will certainly raise some eyebrows. For months now, the company has seemingly tried every which way to avoid bankruptcy, but the financial picture has only gotten worse.