(Reuters) – Shares of Freshpet Inc fell as much as 19% on Wednesday after activist investment firm Jana Partners LLC said the pet food maker’s recent plan to raise capital was “ill-conceived”.
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.
(Reporting by Granth Vanaik in Bengaluru; Editing by Krishna Chandra Eluri and Uttaresh Venkateshwaran)