Help me understand how this is good for us current shareholderss. Our shares were worth $30+ yesterday and the company announces they are diluting our stake by offering more shares and at a lower price than ours were valued? I don't like it
If you bought this stock without understanding the frequent issuing of shares in an SPO, then you are an idiot. You and your ilk caused the foolish price rise and now fall because you bought high and are selling low.
Your shares have a par value of 0.001 and a book value of 27.71. They are bringing your shares more cash in the form of excess book value on the newly issued shares. Your shares will be worth more in book value when this offering is done. And you will still get the dividend.
If you wanted yesterday's price, you had the opportunity to sell yesterday. Or you can recognize that this stock trades cyclically and will go up between now and the next ex-dividend date, which will occur within a few days of a very regular point in the quarter. And because of the increased book value, the price that this will climb to has pressure to go higher than it was yesterday, when everyone with a clue was fearing the SPO and keeping it relatively low.