Blue Apron Plunges On Deal For Possible Sale Of Shares; Lower-than-expected Revenue

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Shares of meal-kit delivery service provider Blue Apron Holdings, Inc. (APRN) have plunged more than 32% Monday morning after the company announced distribution Agreement with Canaccord Genuity LLC for a possible sale of the company’s stock.

As per the distribution agreement, Blue Apron can sell up to $15 million of Class A common stock through Canaccord. Canaccord will receive a commission of 3% of the aggregate proceeds.

The company intends to use the proceedings from the offering for working capital and other general corporate purposes.

Additionally, Blue Apron reported preliminary third-quarter revenue in the range of $109 million-$112 million, about $16 million-$19 million lower than its previous expectation. On average, 4 analysts polled by Thomson-Reuters expect the company report revenue of $129.6 million for the quarter.

APRN, currently at $3.89, has traded in the range of $2.27-$12.76 in the last 1 year.

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