Allot (ALLT) said late Tuesday that it commenced a public offering of ordinary shares.

Allot will offer underwriters a 30-day overallotment option to buy up to an additional 15% of common shares sold in the offering, the company said.

The company plans to use the net proceeds to repay $31.4 million outstanding under the senior convertible promissory note with a face value of $40 million issued to its largest shareholder, Lynrock Lake Master Fund, according to a statement.

Lynrock will convert the remaining $8.6 million of outstanding under the note into common shares, the company said.

Shares were down over 10% in after-hours trading.