Beyond Meat’s shares dropped below $1 as the plant-based meat maker struggles with weak demand, resulting in a 15% decrease in net revenue for the first six months of the year. The company plans to reduce its debt by $800 million, extend maturity, and issue up to 326 million new shares, causing concern among investors.

Nasdaq-listed Beyond Meat faces delisting if its stock remains below $1 for 30 consecutive days. The company’s shares are down 73% from the beginning of the year, trading at $1.04 on Monday and opening at 92 cents on Tuesday, marking a 12% decline in mid-day trading. Investors are wary of the plan to issue new shares.

Once a plant-based meat industry darling, Beyond Meat saw U.S. demand falter due to taste and ingredient concerns. Inflation-related cost increases added to the company’s woes despite introducing a healthier version of its signature burgers in 2024. While demand is higher in Europe, U.S. sales remain lackluster, leading to a suspension of operations in China.

Beyond Meat founder and CEO Ethan Brown announced plans to shift the company’s focus from animal meat replicas to other protein offerings, using “Beyond” as the primary brand. Despite celebrity investors like Bill Gates and Leonardo DiCaprio, the company faces challenges with U.S. demand and stock performance.

Read more at Yahoo Finance: Beyond Meat shares drop below $1 on investor concerns