Shares of Red Cat Holdings Inc. (RCAT) plummeted 9.43% in post-market trading on Tuesday.

The sharp decline followed the company's announcement of a proposed underwritten public offering of $200 million of its common stock. Such offerings typically raise concerns about shareholder dilution, putting downward pressure on the stock price.

Compounding the negative sentiment, the company's first-quarter financial results significantly missed market expectations, with a reported loss per share much wider than analysts had anticipated.