Stock of the retailer Express tumbled Thursday, after the clothing retailer announced plans to sell up to 15 million shares.
Stock of the retailer Express tumbled more than 22% on Thursday, after the clothing retailer announced plans to sell up to 15 million shares. Express plans to sell the stock, which could represent more than 22% of its shares outstanding, via an « at-the-market » equity offering. This means the newly issued stock will be sold from time to time at market prices. Its advantage is that it gives Express control over when it will offer the stock and how much it will offer. In a press release, Express said it plans to use any proceeds for general corporate purposes, which could include repaying debts or investing in e-commerce. Express’ sell-off Thursday comes after the stock shot up more than 35% on Wednesday, as part of a meme stock trading frenzy that has also boosted shares of AMC Entertainment, GameStop, BlackBerry and Bed Bath & Beyond. Express shares had rallied nearly 110% over the past month.
