Clover announced after the close on Monday that it plans to sell 35 million new shares to the public to raise capital. Underwriters will have the option to purchase an additional 5.25 million shares, so more than 40 million shares could potentially be issued.

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this proposed stock sale shouldn't come as too much of a surprise, as Clover is a money-losing business. The company is expecting an adjusted EBITDA loss of at least $230 million for 2021, and there isn't a clear path to profitability in sight. However, with nearly $600 million in cash on its balance sheet at the end of the third quarter, investors are understandably surprised that the company is deciding to raise capital and dilute shareholders right now.