Stock Update (NYSE:ONVO): Here’s Why Organovo Holdings Inc Shares Plunged 19% Today
Organovo Holdings Inc (NASDAQ:ONVO) announced the sale of 9,000,000 shares of its common stock in an underwritten public offering at a price to the public of $2.75 per share, a 21% below yesterday’s closing price.
In addition, the Company has granted the underwriters a 30-day option to purchase up to 1,350,000 additional shares of its common stock on the same terms and conditions. The gross offering proceeds to Organovo from the sale of the shares are expected to be approximately $25.0 million, before deducting underwriting discounts and commissions and other estimated offering expenses and excluding any proceeds from the exercise of the underwriters’ option. The offering is expected to close on or about October 25, 2016, subject to customary closing conditions. (Original Source)
The public offering would dilute shareholders’ investments, and as such Organovo shares are currently dropping nearly 19% to $2.82 in Thursday’s session. ONVO has a 1-year high of $4.99 and a 1-year low of $2.76. The stock’s 50-day moving average is $3.88 and its 200-day moving average is $3.48.
On the ratings front, Jefferies Co. analyst Brandon Couillard reiterated a Buy rating on ONVO, in a report issued on August 5. According to TipRanks.com, Couillard has a yearly average return of 12.9%, a 69% success rate, and is ranked #192 out of 4180 analysts.
Organovo Holdings, Inc. is a biotechnology company, which designs and creates functional and three-dimensional human tissues for medical research and therapeutic applications. It also develops and commercializes a platform technology for the generation of three-dimensional human tissues that can be employed in drug discovery and development, biological research, and as therapeutic implants for the treatment of damaged or degenerating tissues and organs. The company collaborates with pharmaceutical and academic partners to develop human biological disease models in three dimensions.