What happened Shares of Mainz Biomed (NASDAQ: MYNZ) had crashed by 26.4% as of 11:38 a.m. ET on Wednesday. The big decline came after the molecular genetics diagnostic company announced the pricing of a public follow-on stock offering. Mainz plans to sell 1.5 million shares at $15 per share. So what It's not surprising at all that Mainz Biomed's share price dropped so much in response to the news. The price that management set for this new stock offering was roughly 26% below the closing price for the life sciences stock on Tuesday. Image source: Getty Images. The dilution resulting from such secondary stock offerings nearly always causes share prices to sink. However, there's also some good news here for Mainz. The company should rake in gross proceeds of $22.5 million. Mainz revealed in a regulatory filing to the Securities and Exchange Commission last week that it plans to use proceeds from the offering for several purposes. One key use will be to conduct a clinical study in Europe. The company also intends to use some of the money to complete the necessary clinical and regulatory steps to earn U.S. authorization for its ColoAlert colorectal cancer screening test. In addition, Mainz hopes to expand its commercial team and partnerships for ColoAlert in Europe, and to advance the research and development of two of its other products -- pancreatic cancer screening test PancAlert and molecular lateral-flow test GenoStrip. Now what Mainz expects the follow-on offering to close on Friday. The main things that investors will want to keep an eye on will be the company's progress at marketing ColoAlert in Europe and securing authorization to sell it in the U.S. 10 stocks we like better than Mainz Biomed B.V.When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Mainz Biomed B.V. wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of January 10, 2022 Keith Speights has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source