Firefly Aerospace Inc.'s stock plummeted 6.13% intraday on Thursday, extending losses from the previous session.

The decline is attributed to investor concerns over dilution from a newly announced equity offering. The company has filed to offer 12 million shares, including 4 million newly issued shares and 8 million shares from existing shareholders, which would significantly increase market supply and dilute existing shareholder equity.

While the company recently received a $75 million NASA lunar mission subcontract that briefly boosted shares in pre-market trading, the overhang from the large-scale offering has dominated market sentiment, leading to consecutive sessions of decline.