Offerpad Solutions Inc. (OPAD) had a rough Tuesday after announcing it's selling a chunk of new stock to raise some cash. The shares took a beating as investors digested news of the offering.

Here's the deal: Offerpad struck a securities purchase agreement with institutional investors to sell 10 million shares of common stock in a registered direct offering. Each share is priced at $1.80, which means the company is looking at roughly $18 million in gross proceeds before accounting for placement agent fees and other expenses that come with these transactions.

The offering is expected to wrap up around January 13, 2026, assuming all the standard closing conditions are met. Nothing unusual there.

So what's Offerpad planning to do with the money? The company says it's earmarking the net proceeds for general working capital, supporting growth initiatives, optimizing inventory management, and strengthening its balance sheet. Pretty standard fare for a company looking to fuel operations and expansion.

About the Business

For those unfamiliar, Offerpad runs a technology-driven platform focused on residential real estate transactions. The company's pitch is simplifying the home buying and selling process through digital solutions, cutting through some of the traditional friction in real estate deals.

A.G.P./Alliance Global Partners is handling placement agent duties for the offering. The company is conducting this registered direct sale under an existing shelf registration statement and will file a prospectus supplement with the Securities and Exchange Commission.

Price Action: Offerpad Solutions shares were trading down 12.92% at $1.55 at the time of publication Tuesday.