Freshpet tumbles as Jana Partners calls company’s capital raise plan ‘ill-conceived’

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Freshpet on Tuesday had announced its intention to offer privately $350 million of convertible senior notes due 2028, which the company will use for general purposes. Shares of the company fell about 8% in after-market trade following the news.

“We are astonished that Freshpet’s board has elected to initiate a large equity-linked capital raise in a fragile market reeling from a systemic crisis in the banking system,” said Jana Partners in a statement.

New York-based Jana Partners, which disclosed a nearly 10% stake in Freshpet in September, also added the company “requires either significant board change, or in the absence of such change, should be sold”.

Freshpet declined to comment on the statement.

Earlier in December, the activist investment firm had said it plans to launch a proxy fight with the company and run for board seats, according to a regulatory filing.