Smithfield Foods announced Monday that it will sell $250 million in common stock this quarter, according to Meatingplace.com. The proceeds of the offering will be used for working capital and general purposes, including perhaps paying down debt according to the company.
As a result of the stock offering, one of Smithfield's directors and an advisory director have quit the company's board because they do not support the company's stock offering.
A release from Smithfield announced that directors Paul Fribourg and Michael Zimmerman have resigned. Fribourg is chairman, president and CEO of Continental Grain, based in New York. He had been a director since 2007 and is the beneficial owner of about 8.8 percent of Smithfield's stock.
Zimmerman, executive vice president and chief financial officer of Continental Grain Co., also resigned after two years as advisory director.