BARK Stock Rallies 29% After Hours On Take Private Proposal From Stockholder Group

• The group said in a letter that it would acquire all of the outstanding shares of the company’s common stock not already beneficially owned by the stockholder group or their affiliates, in an all-cash transaction, for $0.90 per share.
• The proposed purchase price represents a premium of about 59% from the stock’s closing price on Thursday of $0.565.
• The dog-focused company said that its board has formed a special committee to consider the proposal.

Shares of BARK, Inc. (BARK) jumped 29% after hours on Friday after the company said that its Board of Directors received a preliminary “take private” proposal from a group of its stockholders.

Great Dane Ventures is a group of the company’s stockholders including its CEO Matt Meeker. The group said in a letter that it would acquire all of the outstanding shares of the company’s common stock not already beneficially owned by the stockholder group or their affiliates, in an all-cash transaction, for $0.90 per share.

The proposed purchase price represents a premium of about 59% from the stock’s closing price on Thursday of $0.565.

Firm To Evaluate Proposal

The dog-focused company said that its board has formed a special committee to consider the proposal. The committee consists of disinterested directors and it will retain independent advisors to assist in the process, the company said.

However, there is no assurance that any definitive offer will be made, the company said. Bark is known for its BarkBox monthly subscription service, which provides a monthly themed box of toys and treats for canines, and other products aimed at dog wellness.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around BARK rose from ‘neutral’ to ‘bullish’ territory over the past 24 hours, while message volume increased from ‘high’ to ‘extremely high’ levels.

A Stocktwits user dismissed the announcement as a “tactic” but opined that the stock will cross $1 on Monday.

Another sounded doubts on whether it is a sketchy or a smart play by company insiders. “...depending on if they are actually trying to take it private at $0.90 per share or are making an offer that is obviously too low (but still 50% above current price) in order get attention from market re: how undervalued it is,” they wrote.

According to data from Koyfin, two of the three analysts covering BARK rate it ‘Buy’ while one rates it ‘Hold.’ The stock has an average price target of $2.33, nearly four-times its current price.

BARK stock has toppled 69% over the past 12 months.

Read More: Polestar Shares Edge Up After Hours — Retail Eyes ‘Next Leg Up’ In February Strategy Update

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