APRN - Blue Apron stock plummets over 30% on dilution fears

Blue Apron ( NYSE: APRN ) shares erased its gains from Thursday and then some in Friday’s premarket trading after revealing an equity distribution agreement with Canaccord Genuity.

Under the terms of the agreement, the company may offer and sell shares of up to $30M in Class A common stock through Canaccord. The prospectus highlights the significant dilution impact of the program.

“After giving effect to an assumed sale of 20,689,655 shares of Class A common stock in the aggregate amount of $30M in this offering at an assumed offering price of $1.45 per share, the last reported sale price of our Class A common stock on the NYSE on November 9, 2022, and after deducting commissions and estimated offering expenses payable by us, our as adjusted net tangible book value as of September 30, 2022 would have been $51.4 million, or $0.92 per share,” the SEC filing states. “This represents an immediate increase of $0.27 in as adjusted net tangible book value per share to existing stockholders and immediate dilution of $0.53 in as adjusted net tangible book value per share to investors purchasing shares of our Class A common stock in this offering.”

Shares fell 33.91% in premarket trading, reversing a trend from Thursday when the stock marked a strong gain alongside many of its e-commerce peers .

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