Debt restructuring plan of Beyond Meat (BYND.US) leads to a sharp drop in stock price, shareholders' equity facing significant dilution.

Beyond Meat (BYND.US) stock price has plummeted, as the struggling plant-based protein producer announced that almost all creditors have accepted a debt swap plan that will result in a significant dilution of shareholder equity. The stock fell 66% in pre-market trading, to $0.68. As of the time of writing, the stock is down 56.25% in pre-market trading, at $0.88. As of last Friday, the company's stock price has dropped by 47% this year. According to the company, based on the latest results, it is expected to issue 316 million new shares. The plan, disclosed in September, aims to reduce leverage and lead to a decline in the stock price. According to previously submitted documents, if all holders decide to convert their bonds, they will own 88% of the shares. Beyond Meat has been facing soft demand for plant-based meat alternatives in its largest market, the United States. Sales in the last quarter decreased by about 20%, to $75 million.