Shares of Shopify (SHOP) - Get Report are down 2.4% Tuesday, after they fell in after-hours trading Monday, as the e-retailer said it would offer 1.9 million Class A subordinate voting shares.
The offering will be led by Credit Suisse and Morgan Stanley, which have an option on another 15% of the Class A shares if demand for the shares requires.
The Ottawa company said it planned to use the proceeds of the sale to fund growth and strengthen its balance sheet.
TheStreet's Jim Cramer sold the former Action Alerts PLUS holding ahead of this week's decline.
"Why did we sell it? What did we see? How did we know? Nothing -- absolutely nothing," Cramer said during his latest videoconference call with members of his Action Alerts PLUS club for investors.
"But I said to myself: 'You know what, this stock has been parabolic ... and I don't trust parabolas. I don't like them. I have lost more money on stocks that went into parabola mode than I care to admit."
Separately, the Canadian e-retailer said it was introducing new features for U.S. hemp and CBD retailers, which would expand its cannabis e-commerce platform in the U.S.