Express dropped 25% on Thursday after the retailer said it plans to sell up to 15 million shares. The clothing retailer told investors in an SEC filing that they could lose their money in its volatile stock. Fellow meme stock AMC on Thursday sold 11.5 million shares. See more stories on Insider’s business page.
Express sank Thursday on plans by the company to sell up to 15 million shares. The clothing retailer that’s part of the group of volatile and so-called meme stocks favored by retail traders cautioned investors about potential losses.
Express shares swung lower by as much as 25%, hitting an intraday low of $4.86 after the company said it could sell up to 15 million shares under an agreement with BofA Securities, according to a filing with the Securities and Exchange Commission. That amount would represent about 23% of Express’s 64.97 million common shares outstanding.
The “at-the-money” agreement would see sales take place from time to time at or near market prices. Express shares during Thursday’s session pared their losses to 20%.
“Significant fluctuations in the market