Shares of Planet Labs PBC ( PL ) are trading lower Tuesday morning after the company announced a proposed private offering of $300 million in convertible senior notes due 2030. The offering includes an option for purchasers to acquire an additional $45 million.

What To Know: The move to raise capital has seemingly overshadowed a stellar second-quarter earnings report released Monday. For the second-quarter, Planet posted revenue of $73.39 million, up 20% year-over-year and beating analyst estimates. The company also raised its full-year revenue guidance to a range of $281 million to $289 million, citing a record backlog and significant new contracts with NATO and the German government.

While convertible debt provides capital for growth, it can also lead to potential dilution for existing shareholders if the notes are converted into stock. Planet noted it plans to use a portion of the proceeds to enter into capped call transactions, which are intended to reduce potential dilution. However, investors are reacting to the near-term financing news more than the strong operational update.

Benzinga Edge Rankings: Highlighting the stock’s strong recent performance, Benzinga Edge rankings assign PL an exceptionally high Momentum score of 98.60.

Price Action: According to data from Benzinga Pro, PL shares are trading lower by 4.92% to $9.185 Tuesday morning. The stock has a 52-week high of $9.71 and a 52-week low of $1.79.

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How To Buy PL Stock

By now you're likely curious about how to participate in the market for Planet Labs – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

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