Shares of Senseonics Holdings, Inc. (NYSE: SENS), a medical technology company focused on continuous glucose monitoring systems, plunged over 5% in pre-market trading on Thursday. This drop comes after the company announced a $16 million registered direct offering and concurrent private placement of warrants.

Senseonics revealed plans to sell 45.7 million shares of common stock at $0.35 per share in a registered direct offering, raising approximately $16 million before expenses. In addition, the company will issue unregistered warrants to purchase up to 45.7 million shares at an exercise price of $0.35 per share. If exercised in full, these warrants could generate another $16 million in proceeds.

The offering and warrant issuance will result in dilution for existing shareholders, as Senseonics is introducing a significant number of new shares into the market. This likely contributed to the stock's pre-market decline, as investors reacted to the potential impact on the value of their holdings.