Did PSLV share price just get diluted?

[pd303]

Hi BrotherJohn,
Been watching and listening for quite a while now; Enjoyed learning about silver through your 'Office Series'.
I also remember reading that you said to 'short the paper', buy the physical.
Since I have a trade-able IRA, I took the closest/easiest approach to buying physical ( I thought ) by investing in PSLV, which is supposedly backed by real silver.
I bought around 300 shares this year, which have steadily decreased in value. I have a paper loss of around 25% so far. I believe some of this is due to 'administrative' costs.

Today PSLV went down almost 4% after-hours following their 'Follow-on Offering of Trust Units' announcement:
http://finance.yahoo.com/news/sprott-phy...00955.html

Q: Can you please explain what this announcement means? Have they just diluted the shares with this offering? Not getting a good feeling about PSLV now. Hoping you can help clarify.

thanks
pd303