Freshpet Inc (NASDAQ: FRPT) stock fell 9.59% on September 7th, 2018 but recovered over 0.4% on 10th September, 2018 (as of 11:36 AM GMT-4; Source: Google finance)
Kaskela Law LLC is investigating Freshpet, Inc on behalf of the Company’s current stockholders. In 2017, a shareholder class action complaint was filed in federal court on behalf of certain purchasers of Freshpet’s common stock. Among other things, the shareholder complaint alleged that Freshpet and certain of the Company’s senior executive officers violated the federal securities laws by making a series of materially false and misleading statements to investors regarding: (i) the Company’s ability to expand in retail locations; (ii) difficulties producing Freshpet’s baked product line; and (iii) production problems with Freshpet’s shredded product line. In January 2018, the federal court presiding over the litigation denied defendants’ motion to dismiss the class action complaint, paving the way for litigation to proceed against Freshpet and certain senior executive officer defendants. Kaskela Law LLC is investigating whether the members of Freshpet’s Board of Directors failed to properly fulfill their fiduciary duties to the Company and its stockholders.
On the other hand, FRPT has announced the plans to expand its manufacturing capacity at its campus in Hanover Township, Northampton County, PA. The expansion includes the renovation of an existing 50,000 square foot building and a 90,000 square-foot addition. The $100 million strategic capital investment is expected to support Freshpet’s growth in the United States, Canada and Europe by creating total capacity for approximately $540 million in net sales from the facility. The facility “Freshpet Kitchens 2.0” will make greater use of automation to improve quality, safety and reduce costs. Production start-up is slated for the second half of 2020, subject to the timing of permits and construction. The facility expansion will result in the addition of at least 100 new manufacturing and support jobs over the next three years and up to a total of 200 new jobs once running at full capacity. Freshpet also expects the manufacturing expansion to increase the purchase of locally produced ingredients by approximately two-thirds and support additional jobs at local third-party warehousing and logistics providers. The facility will also include R&D space and a pilot plant facility to enable test runs of new products.
Meanwhile, for the second quarter of 2018, FRPT has reported the Net loss of $3.5 million compared to a net loss of $2.7 million and adjusted EBITDA of $2.5 million compared to $3.2 million. The net sales grew 23% to $47.6 million.