Live entertainment co Venu plunges after announcing stock sale, preliminary results

Venu Holding

28/01/2026 15:16

** Hospitality and live entertainment co Venu Holding's VENU.A shares plunge 26.7% to record low $6.30 early Weds as co seeks equity

** Colorado Springs-based firm late Tues commenced $75 mln stock offering

** It intends to use net offering proceeds to fund development costs of The Sunset McKinney, The Sunset Broken Arrow, and The Sunset El Paso, to complete closing on a property in Centennial, Colorado, and develop an indoor music hall and restaurant on that property, among other purposes

** Co after the bell Tues said it expects Q4 rev of $4.4-$4.8 mln, compared to $4.3 mln in yr-ago period

** In the statement, Chairman and CEO JW Roth said co saw its first development profit of $6.2 mln in the qtr, adding he believes it will become "operationally profitable" by the end of 2026

** Deutsche Bank and ThinkEquity joint bookrunners for the offering

** Co has ~42.8 mln shares outstanding for about $370 mln market cap through Tues close

** With the move on the session, shares have lost a third over the past 12 months

** VENU debuted in Nov 2024 $12 mln IPO priced at $10

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))