Shares of Bionano Genomics (BNGO) plummeted over 20% on Wednesday after the genome analysis company announced a $3 million registered direct offering of common stock and warrants. The offering, priced at-the-market under Nasdaq rules, involved the sale of 9.88 million shares of common stock at $0.3039 per share.

Additionally, BNGO issued Series C warrants with a 5-year term and $0.3039 exercise price, as well as short-term Series D warrants with an 18-month term and the same $0.3039 exercise price, for up to 9.88 million shares each. If all warrants are exercised for cash, the company could raise up to an additional $6 million.

The steep stock price decline was likely a reaction to the potential dilution for existing shareholders from the equity offering and the complexity introduced by the warrant components. While the $3 million in gross proceeds provide BNGO with additional capital for general corporate purposes, including working capital, R&D, debt repayment, and capital expenditures, the offering represents a significant increase in the company's outstanding shares.