Jimmy Higgins
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NEW YORK, NY -- The meat alternative company Beyond Meat had a mind boggling busy day which started in the morning with it's IPO on the New York Stock Exchange. The newly released stock of a company that has never shown a profit and saw losses increase by 50% from 2017 to 2018 opened at $25 a share. Value of the shares quickly began to grow hitting over $50 a share, double its original offering, as investors ignored that losses in 2018 amounted to about 25% of their revenue.
By 11 AM, shares started to drop amid rumors of food safety practices, which was shortly followed by the CEO resigning after the class action lawsuit announced and filed at around 11:15 was settled for $20 million. Beyond Meat admitted to no wrong doing as part of the settlement. A replacement CEO was named and Elizabeth Warren quickly went to Twitter to praise the board's selection.
Shortly after Noon, news of a potential buy out by ConAgra at $65 a share shocked the stock market. About half an hour later, ConAgra confirmed the rumors and noted that acquiring new companies was much easier than actually developing new products themselves. The buyout would include part cash / part stock, valuing the Beyond Meat shares at $65 a share, which led to the shares rising to the buyout bid.
After the takeover, shares of ConAgra dropped 6% shortly before trading ended for the day after they announced layoffs at their newly acquired Beyond Meat. Buyout packages were offered to hundreds of employees in an attempt to "reduce production costs" and increase "efficiency" with the blending of Beyond Meat into the ConAgra family.
By 11 AM, shares started to drop amid rumors of food safety practices, which was shortly followed by the CEO resigning after the class action lawsuit announced and filed at around 11:15 was settled for $20 million. Beyond Meat admitted to no wrong doing as part of the settlement. A replacement CEO was named and Elizabeth Warren quickly went to Twitter to praise the board's selection.
Shortly after Noon, news of a potential buy out by ConAgra at $65 a share shocked the stock market. About half an hour later, ConAgra confirmed the rumors and noted that acquiring new companies was much easier than actually developing new products themselves. The buyout would include part cash / part stock, valuing the Beyond Meat shares at $65 a share, which led to the shares rising to the buyout bid.
After the takeover, shares of ConAgra dropped 6% shortly before trading ended for the day after they announced layoffs at their newly acquired Beyond Meat. Buyout packages were offered to hundreds of employees in an attempt to "reduce production costs" and increase "efficiency" with the blending of Beyond Meat into the ConAgra family.
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