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

1. Cal-Maine announced a public offering of over 3 million shares. 2. The offering is initiated by the late founder's family and Board Chair.

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FAQ

Why Bearish?

Public offerings often dilute shareholder value, negatively impacting stock prices. Historical patterns indicate that similar announcements can lead to an immediate decline in stock price, as seen with other companies during stock offerings.

How important is it?

The offering size and the involvement of the founder's family suggest significant influence on market perception. Given Cal-Maine's prior performance, this announcement could lead to investor caution due to dilution concerns.

Why Short Term?

The effects of share dilution are typically immediate, with pressure on the stock price observed soon after the announcement. Over time, recovery often depends on market conditions and company performance.

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LINRVITCNDA
RIDGELAND, Miss.--(BUSINESS WIRE)--Cal-Maine Foods, Inc. (NASDAQ: CALM) (the “Company”) today announced an underwritten public offering (the “Offering”) of 3,024,287 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”), subject to market conditions and.

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