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Cal-Maine Foods Announces Pricing of Secondary Offering of Common Stock by Company's Founder's Family and Concurrent Share Repurchase

1. Cal-Maine Foods announced a public offering of 2,978,740 shares. 2. Shares are being sold by the late founder's family and board chair.

Shares Buyback
-4.19%Current Return
VS
-2.22%S&P 500
$96.5504/15 09:46 PM EDTEvent Start
$92.504/17 04:21 AM EDTLatest Updated
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FAQ

Why Bearish?

Public offerings increase share supply, often leading to price declines. Historical cases show similar trends in stock reactions to dilutive offerings.

How important is it?

The public offering directly affects share supply and could dilute ownership, impacting investor sentiment. Given the family's connection, this moves shares significantly.

Why Short Term?

The immediate market reaction will reflect the dilution impact on CALM's stock price. Over time, if funds are used effectively, the impact could lessen.

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CALMTSNHRL
RIDGELAND, Miss.--(BUSINESS WIRE)--Cal-Maine Foods, Inc. (NASDAQ: CALM) (the “Company”) today announced the pricing of an underwritten public offering (the “Offering”) of 2,978,740 shares of its common stock by the four daughters of the Company's late founder, Fred R. Adams, Jr. (“Mr. Adams”), Dinnette Adams Baker, Luanne Adams, Nancy Adams Briggs and Laurel Adams Krodel, and Adolphus B. Baker, Board Chair (and Mr. Adams' son-in-law) (collectively, the “Selling Stockholders”), at a public offer.

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