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Invitae Launches $160M Common Stock Offering; Expects 55 Percent Q1 Revenue Increase

NEW YORK – Invitae announced Wednesday evening that it has priced a $160 million public offering of 17,777,778 shares of common stock.

The offering was priced at $9.00 per share and is slated to close on April 6. Invitae is also granting underwriters a 30-day option to purchase an additional 2,666,666 shares of common stock at the same price.

In a preliminary prospectus filed with the US Securities and Exchange Commission earlier on Wednesday, the San Francisco-based genetic testing company had said it was aiming to raise $125 million, based on the $13.67 per share closing price of its common stock on the New York Stock Exchange Tuesday. The number of shares now being offered also is well above the 9,144,111 shares the firm noted in the preliminary filing.

Invitae also withdrew its 2020 revenue guidance due to the "unknown duration and extent of COVID-19" on its business and on the healthcare system. The company had previously said it would accession more than 725,000 samples and bring in more than $330 million in revenue. Invitae added it will not hire additional staff during this time and focus on offering its germline testing services through greater remote ordering and telehealth services.

The company said that it expects to report first quarter revenues in excess of $63 million, a 55 percent increase over its Q1 2019 revenues of $40.6 million. It expects test accessions to be more than 152,000, an increase of more than 60 percent from approximately 94,000 in the same period in 2019, and more than 147,000 billable tests, up 65 percent from 87,000 in the comparable period a year ago.

The firm said that it plans to use the funds from the offering for working capital and general corporate purposes. It said it may also use some of the proceeds to acquire or invest in other businesses, technologies, or assets that complement its own business, though it has no agreements to do so.

Invitae recently announced a deal to acquire three firms: YouScript, Genelex, and Diploid. It will acquire YouScript for around $79.3 million, which includes $25 million in cash and Invitae common stock; Genelex for approximately $20.7 million using shares of its common stock and additional shares if certain milestones are met; and it paid $95 million, of which $32 million was in cash and $63 million in Invitae common stock, to acquire Diploid. 

JP Morgan Securities and Cowen and Company are managing the offering.

In early morning trading on the New York Stock Exchange, Invitae's stock price was down around 10 percent at $10.56.