What happened

Shares of Skillz (SKLZ -3.06%) were going down again on Friday after the company announced the pricing of its secondary stock offering. The offering priced below where shares were trading on the market. As of 10 a.m. EDT, Skillz stock was down almost 11%. 

So what

To be clear, Skillz stock isn't selling off today because of the offering itself. The stock already sold off earlier this week when the offering was first announced. However, at the time, the offering hadn't priced. That's what's new today -- at least 32 million shares will be sold for $24 each. For perspective, Skillz stock was trading around $27 per share when the pricing was announced.

A visibly frustrated man places his hands on his face with a down stock chart in the background.

Image source: Getty Images.

As a reminder, Skillz will only get proceeds from the offering on the 17 million shares it's offering. The rest are being sold by other stakeholders. Furthermore, the offering does allow for the underwriters to sell shares as well -- up to 4.8 million more. However, only the shares offered by Skillz are dilutive to shareholders. Therefore there's minimal dilution of about 4% with this offering.

Now what

Nobody likes to see shareholder dilution. And it would've been better if Skillz could have gotten a price closer to its price on the open market. So it's understandable why the stock has sold off in recent days. However, remember that the company will get around $400 million by doing this. As of the end of the fourth quarter, it had almost $263 million in cash and equivalents and no long-term debt. So $400 million is a very big deal and should go a long way to help this growth stock develop its mobile-gaming platform beyond where it is today.