What happened 

Shares of shipping company Navios Maritime Partners L.P. (NYSE: NMM) fell as much as 11.2% in trading Wednesday after the company announced a large share offering. At 1:55 p.m. EST, shares were still down 9.4% on the day. 

So what

Navios announced a sale of 18.4 million shares of stock for $1.90 per share. The deal will raise a total of $35 million, $33.3 million of which the company will see after fees and other expenses. 

Dry bulk tankers leaving port.

Image source: Getty Images.

Management said the money will be used for general working capital purposes, including vessel acquisitions. That's a catch-all that doesn't tell investors much about why the company needs the cash. 

Now what

Investos aren't particularly happy with the dilution of Navios Maritime's shares, particularly without knowing what the cash will be used for. It's possible the company will find a growth acquisition, but considering the fact that Navios lost money over the past year, it would be better to get current operations in the black before buying more vessels. The uncertainty around strategy will keep me from buying the discount in Navios's shares today.