Why would they announce the SEC inquiry and the stock offering on the same day? They found out about the SEC in December of last year. They have all year to raise money. They could have waited to sell stock. By announcing both pieces of bad news on the same day, they guarantee that the stock price is going to crater.
My only guess: they're pricing their stock options tomorrow/soon.
Theyre taking the hit on pps all at once. When they sell the offering, they too will want to maximize returns to create operating revenue. It's going to be ineresting. Either it's suicide or a smart play. I think we'll know in short order.