Shares in Farmmi, Inc. (NASDAQ: FAMI) tumbled to an all-time low Thursday on news that its $42 million public offering was priced at a heavy discount.
According to a statement posted today, the agriculture products supplier is offering 140 million ordinary shares priced at 30 cents each. That represents a discount of 62% from Wednesday’s close. Today’s 30 cents per share was the lowest in its public trading tenure, which began in February 2018.
The company provided its underwriters a 45-day over-allotment option on the deal to purchase an additional 15% shares. If fully exercised, Farmmi would raise about $48.3 million.
The Lishui-based company plans on using the funds from the offering for working capital and general corporate purposes, it said.
The book-running manager on the deal is Aegis Capital Corp.
The deal would mark Farmmi’s second share sale in the past month. Recently, Farmmi raised about $8.6 million after the underwriter exercised the greenshoe option.
Before the pandemic and during most of 2020, Farmmi struggled to stay in compliance with Nasdaq’s minimum required bid price of $1 per share. While it regained compliance with Nasdaq earlier this year, it finds itself in the same trouble yet again. Farmmi is on track for the eighth consecutive trading day to close below $1 per share.
Shares in Farmmi are down 70% year-to-date.