The secondary offering that just occurred was run by Solera and Annies received no benefit from it. Solera, which nurtured Annies until it went public is owned by Molly Ashby, who remains a director of Annies and who has benefitted enormously from the sale of Annies stock.
If I've read things correctly, what I don't get is how Solera can issue Annies stock for Solera's (meaning of course, Molly Ashby) exclusive benefit. Now, I get that Annies registered with the SEC and so on, and that this is legal; but it seems to me that issuance of these shares diluted other shareholders' ownership.... yes? What is the agreement that allows this kind of deal to occur; can it happen again; and why is this good for Annies shareholders?
george has covered the topic well; I'll just add.
Annies was around before Solera had ever heard of it. Solera bought Annies. Not surprising that Ashby is a director given the amount of shares her company owned. Do not be surprised when Annies some day announces Ashby is no longer a director. Not a huge concern that Solera has sold out. This is what they do.
Buy a company, spruce it up, sell some shares in the IPO and ultimately liquidate all shares via secondary and move on.
I'd be more concerned about BNNY's lofty share price!
My understanding is Solera is simply selling the shares it owns. Since they are the largest shareholder, they are working with UBS to unload the shares. The question people should be asking is why is the largest shareholder selling all it's shares - maybe they know something we don't
Uncle George, if that were the case, I'd be fine with that. The reason I'm asking has to do with has with the shelf registration that occurred this summer with the SEC, announcing Solera would do this; and then the act itself. Now, I'm not an expert but if Solera were just selling shares it owned, why would there need to be a shelf registration with the SEC?