What’s the difference between Public Offering and my seed investment and why is it less?

I’m hoping I don’t get eaten alive by asking this but if it must be, then so be it.

I purchased a 100 shares of reAlpha (AIRE) in 2021 for 10$, at that point the company was more focused on real estate and is now heavily promoting their AI technology instead.

I am not a well educated investor, I was working as an MLO at the time and liked the idea and so I just threw my spaghetti at the wall and wanted to see what would happen.

The company never really notified us it was listed on the NASDAQ until the literal morning our shares went live(maybe this is common), and I couldn’t get the shares transferred to e-trade for over 3 weeks.

It dropped this morning after the news of a public offering of 1.6m shares at 5$.

My actual question is, what’s the purpose of a company diluting the shares that are already on market and how sad should I feel?