Shares of Beyond Meat, Inc. (BYND) plummeted 17.86% in intraday trading on Tuesday, continuing a steep decline that began earlier in the week. The dramatic drop is primarily attributed to the plant-based meat substitute producer's recently announced debt-swap deal, which has raised serious concerns among investors about substantial share dilution.

Beyond Meat disclosed that approximately 97% of its convertible note holders agreed to the terms of a debt exchange offer. While this deal will reduce the company's debt load by roughly $800 million, providing more time to strengthen its balance sheet, it comes at a significant cost to equity investors. The exchange will result in the issuance of up to 326 million new shares of common stock, more than quadrupling the current outstanding share count of about 76.1 million.

This latest development compounds Beyond Meat's ongoing challenges, including declining annual sales for the past three years and the absence of profitability since its inception. TD Cowen analysts, who maintained a Sell rating on the stock, slashed their price target to 80 cents from $2, citing that "the company remains financially and operationally challenged." As Beyond Meat struggles to revitalize its business in the face of increased competition and shifting consumer preferences, investors appear increasingly wary of the company's future prospects, reflected in the continuing stock price decline.