Farmmi’s $3M Offering of 86.5% Outstanding Shares at 79% Discount Triggers 78% Plunge
FAMI•Farmmi announced a $3M offering of 12M Class A shares and pre-funded warrants at $0.25 each, a 79% discount to Friday’s close representing 86.5% of outstanding shares and causing a 78% stock plunge. Fiscal 2025 revenue plunged 56% to $28M, net loss widened to $53.4M and cash fell to $0.8M.
1. Discounted Public Offering
Farmmi filed an underwritten public offering to issue 12 million Class A ordinary shares and pre-funded warrants at $0.25 per unit, raising $3 million gross and representing 86.5% of its 13.87 million shares outstanding. The underwriter has a 45-day option to purchase up to 15% additional shares.
2. Stock Price Impact
The 79% discount to the prior closing price triggered a 78% collapse in Farmmi’s stock, its largest one-day slump, driving the shares to an all-time low and extending year-to-date losses to roughly 79%.
3. Fiscal 2025 Financial Results
For the fiscal year ended September 30, 2025, Farmmi’s revenue fell more than 56% to $28 million while its net loss widened sharply to $53.4 million from $4.6 million a year earlier. The company ended the year with $0.8 million in cash and cash equivalents.
4. Use of Proceeds and Liquidity Outlook
Farmmi plans to deploy net proceeds alongside existing cash for general corporate purposes and working capital, aiming to bolster liquidity after a steep revenue decline and historically low cash reserves.
