Dixie prices stock offer to yield $26.6 million, but shares drop on Nasdaq

Dixie prices stock offer to yield $26.6 million, but shares drop on Nasdaq

May 14th, 2014 by Dave Flessner in Local - Breaking News

Creeler Vickie Glover replaces an empty spool at the Dixie Group in North Georgia.

Photo by Angela Lewis/Times Free Press.

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.