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Bed Bath & Beyond announces $300 mln stock offering

By Reuters_News

14:32, 30 March 2023

A file photo of an exterior view showing a Bed Bath & Beyond store in Novi, Michigan, U.S., January 29, 2021.
A file photo of an exterior view showing a Bed Bath & Beyond store in Novi, Michigan, U.S., January 29, 2021.

- Bed Bath & Beyond Inc BBBY.O said on Thursday it has reached an agreement with investment bank B Riley to sell $300 million of its shares, as the struggling retailer looks to raise equity.

The home goods retailer added it was terminating its previous public equity offering and all outstanding warrants for Series A Convertible Preferred Stock made in February.

The company had planned to raise around $1 billion through the offering of preferred stock and warrants in a last-minute attempt to ditch bankruptcy, and had so far raised $360 million through the complex deal.

On March 20, Bed Bath's stock dropped 21% to close at 81 cents after the company's announcement that it was seeking shareholder approval for a reverse stock split.

Bed Bath's stock has remained under $1 since then, leaving the home goods retailer at risk of losing additional funding from hedge fund Hudson Bay Capital Management, a pivotal investor.

The company expects to use the net proceeds from the offering made on Thursday to enable its strategic initiatives in fiscal 2023, such as investing in merchandise inventory, increasing store footprint and realigning cost structure.

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Separately, Bed Bath said it expects fourth-quarter comparable sales to decline in the 40% to 50% range, compared with analysts' estimates of a 26.3% drop, according to Refinitiv data.

Shares of the company fell about 10% in early trade on Thursday as the company expects demand to dwindle after its merchandising strategy to sell more store-branded products flopped.

The retailer added it also expects operating losses to continue and fourth-quarter net sales to be about $1.2 billion, compared with estimates of $1.43 billion.



Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Krishna Chandra Eluri

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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