Boxed Stock Price Jumped 33.4% on News of Potential Sale Talks

The Boxed Inc (NYSE: BOXD) stock price jumped 33.4% after news broke that it had spoken with two potential suitors. Investors were excited by the news, given the e-commerce grocery platform has been looking for a potential sale since January. 

Earlier this year, the company unveiled plans to pursue a potential sale of the entire business and saw its share price surge 40% after the news. The positive reaction from investors yesterday and in January indicates their excitement about a potential sale of the company. 

Like most startups, Boxed Inc has struggled to generate profits, and its shares have fallen 96% since its IPO in December 2021. Investors who bought during and shortly after the IPO are sitting on significant paper losses and would love nothing but to unload their shares at a higher price. 

Still, the company declined to comment on whether the rumors that it was in negotiations with potential buyers, which means that all we have is speculation. Still, the odds are high that the grocery platform company is in talks with potential buyers because the harsh operating climate has left many startups struggling to stay afloat. 

Boxed has had a lot of activity recently, including the latest partnership with Colavita USA’s e-commerce division to provide third-party direct-to-consider (DTC) logistics for the division. The Italian specialty foods manufacturer outsourced all its logistics functions in the USA to Bxed. 

The company will be responsible for inventory management, warehousing, and fulfillment of customer orders using its flagship, fully automated fulfillment center in Union, NJ. The contract was a significant win for Boxed.

Boxed also recently announced that Spresso, its SaaS modular solution platform, had partnered with global enterprise digital commerce platform VTEX.  The partnership would unlock Spresso's modular solutions, including LTV & Churn Prediction and Price Optimization, which would not be accessible to thousands of VTEX customers worldwide.

The company also raised $20 million in new funding from a lender through a second lien secured term loan facility with a lender that provided the firm with $10m of funding at the close. The new facility also provides an additional $10m in funding.  

*This is not investment advice. 

The Boxed stock price jumped 33.36% to trade at $0.5897, from Wednesday’s closing price of $0.4422.