Shares of America’s Car-Mart (NASDAQ:CRMT) dropped by 11.9% to $44.02 in premarket trading after the company announced plans for a $65 million stock offering.
The automotive retailer intends to use the proceeds from the equity raise to pay down its revolving credit line, with any remaining funds allocated for general corporate purposes.
Jefferies is acting as the sole bookrunner for the offering.
If the losses hold, the stock could open at its lowest level since March 2020.
The company currently has 6.4 million shares outstanding, giving it a market capitalization of approximately $320 million.
The announcement follows a sharp decline in CRMT’s stock price on September 4, when it fell by 16% to close at $50.34.
The drop came after the company reported a 5% year-over-year revenue decrease in fiscal Q1, with revenue of $348 million and a quarterly loss of 15 cents per share, significantly missing estimates of a 66 cents per share profit.
Year-to-date, America’s Car-Mart share price has fallen by 34%.