Bojangles was falling in late Monday trading after the casual-dining chain disclosed plans to sell 6 million shares on behalf of selected shareholders through a secondary offering of stock.
The company did not identify the selling shareholders and a preliminary prospectus for the deal was not yet available. Bojangles also said it will over 30-day options to underwriters participating in the upcoming stock sale to buy up to 900,000 additional shares of its common stock to cover possible overallotments. The company will not receive any proceeds from the offering.
BOJA shares were down almost 4% in Monday’s after-hours trading at $18.95 apiece, extending a nearly 2% decline from today’s regular session.