Shares in Monster Beverage Corp(NASDAQ:MNST) dropped steeply on Wednesday after senators called for stricter safety norms from regulators for the food and drinks sector.
There have been calls for more regulation in the industry but these have intensified after the recent death of a 14-years old girl after consuming two large energy drinks in a short span of time.
Senators Dick Durbin, and Richard Blumenthal have written to the U.S. Food and Drug Administration asking it to probe and study the effects that the caffeine present in energy drinks, have on children and adolescents.
Senator Durbin had earlier written to the FDA in April, soon after the death of the girl, asking for a full-fledged investigation into the energy drinks industry. He was not satisfied with the response provided by the FDA then.
Will MNST Bounce Back After The Recent Slump? Find Out Here
There have been concerns over the side effects of high levels of caffeine in the energy drinks and their rampant consumption by children of all ages without any supervision.
Monster shares fell nearly 10 percent to $50.78 each.
Meanwhile railroad operator Genesee & Wyoming Inc.(NYSE:GWR) is planning to sell more than 3 million shares of stock and 2 million equity units to raise funds that would be used in its purchase of RailAmerica.
The company is offering 3.5 million shares of Class A stock each with a stated amount of $100.
The company also plans to offer the underwriters to the sale a 30-day option to buy an additional 525,000 shares of Class A common stock.
The underwriters will also get tangible equity units with an option to purchase up to an additional 300,000 equity units.
Get Free Trend Analysis on GWR Here
In case the acquisition of RailAmerica is not completed then the fund raised via the public offering would be used for corporate purposes.