The sharp decline in SLS's stock price is a direct result of the announced public offering, which is priced below the current market price, indicating dilution for existing shareholders. The market's reaction is typically negative to such announcements, especially when the offering price is at a discount to the market price, as it suggests the company may be in need of capital and willing to accept less favorable terms. This can be seen as a sign of weakness or distress, leading to a decrease in investor confidence and a drop in stock price.