Beyond Meat's shares were trading below $1 Tuesday as investors fretted over the company's plans to cut its debt by issuing more shares.

It was further bad news for the plant-based meat maker, which has been struggling with weak demand for its burgers, sausages, tenders and other products. Beyond Meat's net revenue was down 15% in the first six months of this year.

El Segundo, California-based Beyond Meat said Monday that most of the holders of its convertible notes had agreed to a plan to help the company reduce its debt load by $800 million and extend the time until that debt matures.

Under the plan, Beyond Meat exchanged debt due in 2027 for $202.5 million in debt maturing in 2030. The company also said it would issue up to 326 million shares of new stock. That rattled investors, since it will dilute the value of current shares.

Beyond Meat's stock closed Monday at $1.04 per share. On Tuesday, Beyond Meat's shares opened at 92 cents and were down 12% in mid-day trading.

Nasdaq-listed companies must not let their stock drop below $1 for 30 consecutive days or they could eventually see the stock delisted. Beyond Meat's shares are down 73% from the start of this year.

Beyond Meat was the darling of the plant-based meat industry when it went public on the Nasdaq stock exchange in 2019. The company had attracted celebrity investors like Microsoft co-founder Bill Gates and actor Leonardo DiCaprio and had big plans to expand overseas.

But U.S. demand for its products never really took off. Consumers weren't excited about the taste or the long list of ingredients, and inflation-related cost increases further hurt the company. Beyond Meat introduced a healthier version of its signature burgers in 2024, but that didn't boost U.S. sales.

Demand has been higher in Europe, where McDonald's sells Beyond Meat's plant-based burgers and nuggets. But U.S. fast food chains have been reluctant to add Beyond Meat's products to their menus. Beyond Meat also suspended its operations in China earlier this year due to poor sales.

During a conference call with investors in August, Beyond Meat founder and CEO Ethan Brown said the company planned to increasingly use "Beyond" as its primary brand and move beyond animal meat replicas and into other protein offerings.