05:04 PM EDT, 03/21/2024 (MT Newswires) -- Dutch Bros ( BROS ) said late Thursday that certain stockholders associated with TSG Consumer Partners launched a secondary offering of 8 million class A common shares of the company.

The selling stockholders plan to grant a 30-day overallotment option to the underwriter to acquire up to 1.2 million additional shares.

Substantially concurrently with the offering's close, the selling stockholders expect to distribute in kind securities convertible into 389,823 shares to certain of their indirect members who have decided not to participate in the share sale, the company said.

Dutch Bros ( BROS ) said one of the company directors nominated by the selling stockholders is expected to resign from the board once the offering closes, and the selling stockholders will only have the right to designate one director to the board.

Dutch Bros ( BROS ) is not offering any shares in this offering and will not receive any proceeds from the sale by the selling stockholders.

The company's shares fell 4.6% in after-hours activity.

Price: 34.00, Change: -1.62, Percent Change: -4.55