ELI5: Why would a company sell shares off to an underwriter for second public offer and what are some possible implications?

Looking at the company like MDCA, recently they sold off 3.5 million shares to an underwriters (BMO Capital) in order to add more securities to the market. Why would a company do this? Does this not dilute the price of current shares? Is this completed to add more visibility into the company, or are there some indirect implications involved?

Thanks!

Submitted June 18, 2014 at 03:32PM by cjwarren http://ift.tt/1r8NqdX