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Invitae Prices $50M Stock Offering; Shares Tumble

NEW YORK (GenomeWeb) – Invitae has priced its offering of 11,111,111 shares of its common stock at a price of $4.50 per share.

The genetic testing firm had said earlier this week that it expected to offer 7,122,507 shares. But its stock price has tumbled since announcing the planned offering, from a close of $7.00 on Monday to a close of $4.84 yesterday on the New York Stock Exchange.

Invitae said that it expects gross proceeds from the offering of around $50.0 million.

The company also has provided underwriters a 30-day option to purchase up to an additional 1,666,666 at the offering price.

Proceeds will go toward working capital and other general corporate purposes. A portion may also be used for acquisitions or investments in complementary businesses, assets, or technologies, it added in its SEC filing for the offering earlier this week, as well as investments in certain securities.  

JP Morgan Securities and Cowen and Company are joint book-running managers, and William Blair & Company, is the lead manager for the offering.

In Wednesday morning trade, shares of Invitae fell a further 13 percent to $4.72.