Hi all, Still learning more about investing and had a question I was hoping to get some help with. I have a small amount of money invested in Solo Brands (DTC) - in short, I love the company and it’s products and think it has tremendous growth potential or could be a great acquisition target.
This morning, it was announced there would be a secondary share offering from one of the investors of 11 million shares. This seems different from the usual share dilution I’ve seen as it does not appear the company will be raising any capital - money is going only to the investor.
The stock is down 18% on the news. I still like the company and may even add to my position, but was wondering if someone could help explain more about what this secondary offering is and why the market reacted so negatively to it.
Appreciate the help and education!
[link] [comments] https://www.reddit.com/r/stocks/comments/13eo2ej/question_about_secondary_offerings/
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