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  5. DCBO: Right after I purchased this e-learning company last week they announced a $200m shareholder dilution. [Docebo Inc.]
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Q: Right after I purchased this e-learning company last week they announced a $200m shareholder dilution. Naturally the stock tanked and I'm down around 25% in less than a week. Yikes-what should I do?

Asked by DAVE on January 12, 2022
5i Research Answer:

It is not shareholder dilution. The at the market offering is done by existing shareholders, over time. No new shares are created and the company receives no proceeds from this. Still, investors do not like to see selling of any kind. But the decline we think has far more to do with the growth stock sell off than this particular piece of news.