What happened 

Shares of energy stock Orbital Energy Group (OEG) fell as much as 19.1% in trading on Wednesday after the company announced a share offering. Shares, which have held fairly steady all day, are down 18.5% at 2 p.m. EDT. 

So what

The biggest news is that Orbital Energy agreed to sell 10.4 million shares of stock to institutional investors for $3.65 per share. That's still below where shares are trading today, providing new investors with a big discount on the stock.

Solar farm in a field at dusk.

Image source: Getty Images.

Management expects the offering to close on Thursday, and until at least then, I wouldn't expect the stock to jump. Orbital Energy may just need the company to survive after reporting an $18 million loss in the first quarter of 2021 and having just $34.9 million in cash on the balance sheet.

Now what

Orbital Energy is a long way from profitability, and that's one of the reasons it needs to raise cash. While I like some of the markets the company is in -- like solar, natural gas, and electricity transmission -- it hasn't proven the ability to make money. That alone will keep me out of the stock, even with the discount in shares today.