Today, word spread of the Beasley Broadcast share offering. The market reacted poorly, sending the stock deep into the red zone, leading it to eventually close down 16%.
Beasley Broadcast Share Offering: July 23rd, 2018
Beasley Broadcast Group is a market radio broadcaster, based in Florida. This year, the company has seen some positives, from a net revenue increase in the first quarter (up 2.6%) to participating in the Gabelli & Company 10th Annual Entertainment & Broadcasting Symposium, which took place last month.
Let us not forget the recent acquisition of WXTU-FM, either. Beasley Broadcast Group purchased the Philadelphia-based company for $38M.
But today, things changed. When Beasley Broadcast Group announced a proposed sale of common stock, investors rebelled.
The announcement says Beasley Broadcast Group will offer over 1.3M shares for an undisclosed value.
Details on the Share Offering
So we know the number, but where will the proceeds of the main section of the Beasley Broadcast share offering go?
Well, according to the press release, proceeds will be used by the company for “general corporate purposes,” which could potentially mean debt repayment, working capital, or future acquisitions.
The Market’s Reaction was Not Good
As we said, the Beasley Broadcast stock (NASDAQ:BBGI) plunged on the news. At first, the stock dropped almost 14%, trading at $9.15. And then things got worse.
According to Yahoo Finance, at closing time on the Nasdaq exchange, Beasley Broadcast was trading $8.90. This means the stock closed the day down 16.04%.
The Company
For those who don’t know, Beasley Broadcast Group operates radio stations throughout the US, including AM and FM stations.
Right now, Beasley Broadcast Group owns 63 radio stations in various radio markets, like Augusta, GA, Boston, MA, Detroit, ML, Las Vegas, NV, and Morristown, NJ.
Thoughts?
For those who do know the company, what do you think about the Beasley Broadcast share offering? Do you think the Beasley Broadcast stock should have dropped as much as it did today?
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