Oatly Group AB (NASDAQ:OTLY) shares slipped on Tuesday after disclosing plans to raise capital and amend shareholder agreements.

In an SEC filing, the Swedish dairy alternative company announced intentions to call an extraordinary general meeting of shareholders. At this meeting, shareholders will consider a proposal to increase the limits in the number of shares “to increase the room for issuance of additional shares without the need for further shareholder approval.”

The secondary proposal regards a capital raise in line with the implications of the initial motion. The proposal seeks authorization to raise up to $300M in the form of shares, warrants exercisable for shares or bonds convertible into shares without first offering those securities to existing shareholders. The board indicated that the new guidelines will provide the company with “a wider range of approaches to raise capital.”

Shares of Oatly Group (OTLY) fell 4.94% near the midpoint of Tuesday’s trading day.

Despite the adverse stock reaction after the announcement, Piper Sandler analyst Michael Lavery applauded the plan.

“OTLY has called an extraordinary general meeting of shareholders to advance its

capital raise options, which we consider a positive (and purely administrative) step toward removing its capital raise overhang,” he told clients. “The EGM (set for March 6) is the administrative step that was always necessary to remove the capital raise overhang. We also believe allowing excess funding above its $200M publicly stated needs is also positive.”

As such, he maintained a Buy-equivalent rating on the stock and a $4 price target.

Read more on Mizuho’s recent upgrade of Oatly.