Down right criminal, but that's how the game is played. It's their job to take your money by hook or by crook, and they're very good at it. No doubt the in the know crowd were dumping after the upgrades. I just sold @ 5.45. Who knows what could come out of left field.
What's the price AND how many shares are being offered. The shelf registration for this offer was made a couple of months ago, but the actual implementation announcement wasn't until today. The drop in early January was due to this offer. Somebody had to know ahead of time that this was coming. The American stock market is crooked.