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Oatly Group AB (NASDAQ:OTLY) was protected at Mizuho after investors worried by the company disclosure plans to increase capital and amend shareholder agreements.
Shareholders with Oatly (OTLY) will vote on March 6 on the approval of increasing the maximum number of shares from 1B to 2B and allowing the sale of up to 300 million USD of shares, exerciseable warrants on shares or convertible bonds to raise capital.
Despite the immediate drop in stock prices, BofA analyst John Baumgartner and Oatly watch team (OTLY) is positive news as it addresses liquidity needs in 2023, increases capital flexibility and will allow funding from board investors such as Blackstone and Verlinvest. “We do not believe this path means the inability to secure waivers from (unused) credit facility lenders for minimum EBITDA covenants,” he noted. BofA holds a Buy rating for Oatly after the reveal.
Oat (OTLY) followed Tuesday’s big drop with 3.33% fell in early trading on Wednesday.
Alpha Quant Search Ranking on Oatly (OTLY) is still flashing Sell but the quantification score has gone up since the beginning of the year.
