The significant drop in SPCB's stock price is a direct result of the announced direct offering, which is typically viewed negatively by the market due to the dilutive effect on existing shares. The offering price being set below the current market price further exacerbates the negative sentiment, leading to a sharp decline in stock value. The involvement of warrants, exercisable at a slightly higher price, adds potential future dilution, reinforcing the negative outlook in the short term.