Montrose Environmental Group, Inc. (MEG) shares fall after price announcement of increased public offering
What’s going on with MEG?
Montrose Environmental Group, Inc. (MEG) today announced the price of its previously announced subscribed public offering of 2,500,000 common shares at a price of $ 62 per share. The offer has been increased compared to the 1,750,000 shares previously announced.
The Company has also granted the underwriters a 30 day option to purchase up to 375,000 additional common shares.
MEG shares were down 3.7% to $ 61.31 at 10:50 a.m. on Wednesday.
What does this mean for Montrose Environmental?
Montrose’s public offering will benefit the company by allowing an injection of funds in an area of its choice. Montrose said they plan to use the proceeds “for general corporate purposes, including financing acquisitions, working capital, capital expenditures such as research investments, development and software, or debt repayment “.
While the public offering will provide funds to the company, the offering will ultimately reduce the share price as new shares are added to the existing amount. This dilutes the overall share price because the profits must be distributed among a larger number of shares.
JP Morgan, BofA Securities and William Blair are acting jointly as principal bookkeepers and representatives of the Underwriters for the Offer. Stifel, Needham & Company, Capital One Securities and BNP PARIBAS also act as co-book managers for the offering.
The offer is expected to close on October 1, 2021.
MEG has a Long Term Technical Rank of 98. Find out what that means to you and get the rest of the ranking on MEG!
Montrose Environmental Group Inc is an environmental services company. The areas of business operations are Assessment, Authorization and Response, Measurement and Analysis, and Remediation and Reuse. Through its Assessment, Authorization and Response segment, the company provides scientific advisory and advisory services to support environmental assessments, environmental emergency response and environmental audits. Measurement and analysis includes the testing and analysis of air, water and soil to determine concentrations of contaminants, while the remediation and reuse segment provides customers with services of ‘engineering, design, implementation, operation and maintenance, to treat contaminated water, remove contaminants from soil or produce biogas from food or agricultural waste.