Announcement and Market Reaction
Mama’s Creations Inc (NASDAQ:MAMA) disclosed that it has commenced an underwritten public offering of common stock. In after‑hours trading on Monday, the announcement caused the shares to fall 8.1%.
Offering Structure
All shares in the offering are being sold by the company itself. The underwriters have been granted a 30‑day option to purchase up to an additional 15% of the offered shares at the public offering price, less applicable underwriting discounts and commissions.
Use of Proceeds
The company stated that net proceeds from the offering will be used for working capital and general corporate purposes. It added that the proceeds may also be used to fund acquisitions of businesses or assets that are complementary to its operations, but it currently has no arrangements or commitments for such transactions.
Conditions and Uncertainties
The proposed offering is subject to market and other conditions, and the company provided no assurance that the offering will be completed, nor any guarantee regarding the final size or specific terms of the transaction.
Managing Underwriters
William Blair & Company, L.L.C. and D.A. Davidson & Co. are serving as lead book‑running managers. Craig‑Hallum Capital Group LLC, Lake Street Capital Markets, LLC and Roth Capital Partners, LLC are acting as co‑managers for the offering.
Business Overview
Mama’s Creations markets and manufactures fresh deli prepared foods that are sold in more than 12,000 grocery, mass, club and convenience stores across the United States. Its product portfolio includes a range of high‑quality fresh prepared foods built on the MamaMancini’s brand heritage in Italian cuisine.