The Dixie Group, Inc. announced today that it has priced a public offering of 2.5 million shares of its stock to yield the company $26.6 million.
Shares in the Chattanooga-based carpet maker have shed nearly one fourth of their value since Dixie announced last week its intention to issue the additional stock to raise more money, in part, to pay for its recent $17.5 million purchase of Atlas Carpet Mills. Dixie stock fell Wednesday by another $1 a share, or nearly 8.6 percent, to close at $10.68 per share, in trading on the Nasdaq exchange.
Dixie's stock price fell Wednesday to its lowest price since Oct. 24. Last week, Dixie shares traded above $14 a share.
Dixie said in a statement today that the stock offering, which is being managed by Wells Fargo Securities and Raymond James, is expected to close Monday.
In connection with the offering, the Company has granted the underwriters an option for 30 days to purchase up to an additional 375,000 shares of common stock to cover over-allotments, if any.
Dave Flessner is the business editor for the Times Free Press. A journalist for 35 years, Dave has been business editor and projects editor for the Chattanooga Times Free Press, city editor for The Chattanooga Times, business and county reporter for the Chattanooga Times, correspondent for the Lansing State Journal and Ingham County News in Michigan, staff writer for the Hastings Daily Tribune in Nebraska, and news director for WCBN-FM in Michigan. Dave, a native ...