What happened
Celsius Holdings (CELH -1.41%) announced pricing on a sale of common stock yesterday, and the market revalued shares accordingly today. As of 1:20 p.m. EDT, shares of the fitness and health drink maker were down almost 15%.
So what
Celsius said a sale of more than 6.5 million shares of common stock would be priced at $62.5 per share. That represents a 14% discount to Wednesday's closing price. But the price is also more than 30% higher than where the stock traded one month ago. Only 1 million of the shares are being offered by the company, with the balance coming from other selling shareholders.
Now what
The stock has marched higher over the past month after the Florida-based maker of drinks used by athletes and fitness buffs reported revenue in its first quarter ended March 31 jumped 78% over the year-ago quarter, led by sales growth in North America. The company also was selected to join the S&P SmallCap 600 index.
Sales in the company's U.S. home market more than doubled in the first quarter compared to the prior year's quarter, making up almost 80% of total revenue. International sales grew 25% in the same period.
Celsius said the funds received from its portion of the sale will be used for general corporate purposes. Shares of the fast-growing company are up more than 600% in the last year, as it gains popularity and has expanded its list of retail and distribution partners.