GrowGeneration Corp. (NASDAQ: GRWG) publicly filed a registration statement with the U.S. Securities and Exchange Commission (SEC) for a proposed follow-on public offering raising $125 million on Monday. The offering caused shareholders to sell the stock presumably over concerns of dilution. Shares were falling over 5% in early trading to lately sell at $32.50. The company’s 52-week high is roughly $37, so it hasn’t dropped too much from the year’s high.

In connection with the offering, GrowGen expects to grant the underwriters a 30-day option to purchase up to an additional 15% of the shares of common stock offered in the public offering.  The company said it intends to use the net proceeds from this offering primarily to expand its network of hydroponic/garden centers through organic growth and acquisitions, and for general corporate purposes. Since 2014, GrowGen has acquired 34 stores and opened 16 new stores. The company said it plans to continue to pursue acquisitions going forward. “We actively evaluate and pursue acquisitions on an ongoing basis, and are focusing on Ohio, Illinois, Pennsylvania, New York, New Jersey, Massachusetts and Missouri as new markets where we plan to open new operations,” it said in the new prospectus.

This new deal follows the announcement in June when the company priced an underwritten public offering of 7,500,000 shares of its common stock at $5.60 per share. At the time, GrowGen said it expected the gross proceeds to be roughly $42 million, before deducting the underwriting discount and other estimated offering expenses. The deal was upsized from the previously announced offering size of $35 million of common stock and is expected to close on July 2. The underwriters had a 30-day option to purchase up to an additional 1,125,000 shares of common stock offered in the public market.

According to Yahoo Finance, eight analysts are covering the stock and all have a buy rating. The average target price is $29.80.  The average revenue estimate for the current quarter is $58 million, an increase of 131% over last year’s sales for the same time period.