BRC Inc. stock offering raises $35 million for energy drink expansion

Published 17/07/2025, 11:44
BRC Inc. stock offering raises $35 million for energy drink expansion

Investing.com - BRC Inc. (NYSE:BRCC) commenced a follow-on public offering of 28 million shares of Class A common stock at $1.25 per share, with expected gross proceeds of $35 million, according to a company announcement on Wednesday. The stock, which has declined over 74% in the past year according to InvestingPro data, currently trades below its Fair Value.

The offering, which is expected to close on July 18, includes a 30-day option for underwriters to purchase an additional 4.2 million shares. The stated proceeds figure does not account for underwriting discounts, commissions, and other expenses payable by the company.

BRC plans to use the capital raised for general corporate purposes, including repayment of revolving credit and supporting the growth of its newly launched Black Rifle Energy beverage line.

Telsey Advisory Group maintained its Outperform rating on BRC with a $4.00 price target following the announcement. The firm acknowledged that while BRC is raising equity capital at a low valuation, it considers the move prudent for maintaining liquidity in the current uncertain consumer spending environment.

The capital infusion is expected to help accelerate BRC’s multi-year growth strategy, with particular focus on expanding the Black Rifle Energy beverage business.

In other recent news, BRC Inc. reported mixed financial results for the first quarter of 2025. The company met earnings per share expectations with a loss of $0.04, while revenue slightly exceeded projections at $90 million. Despite this, the company experienced a 9% year-over-year decline in revenue to $84.6 million, attributed to a 15% drop in direct-to-consumer sales, though the wholesale segment saw a 9% increase. BRC Inc. reaffirmed its financial guidance for the fiscal year ending December 31, 2025, indicating no changes to its projections. In another development, the company launched a public offering of its Class A Common Stock, with D.A. Davidson & Co. serving as the sole bookrunner for the offering. Additionally, BRC Inc. appointed Matthew Amigh as the new Chief Financial Officer, bringing over 25 years of financial expertise to the role. The company also held its annual stockholder meeting, electing three Class III directors and ratifying Ernst & Young LLP as the independent registered public accounting firm for the fiscal year.

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