San Diego-based Organovo Holdings Inc. has announced a $40.5 million public offering of its common stock. The company said the offering of 9 million shares will be priced at $4.50 per share. Net proceeds are expected to be about $37.7 million, Organovo said.
The San Diego company is developing three-dimensional bioprinting technology that can build functional human tissues for medical research and therapeutic applications.
The company said it would use the funds from the public offering for general corporate purposes. This includes research and development, commercializing its products, general administrative purposes, license or technology acquisitions, working capital and capital expenditures.
Organovo last month switched from the OTC market and is now listed on the New York Stock Exchange. It is trading under the ticker symbol ONVO.
The $339 million market cap company was founded in 2007, and began to ramp up operations in 2009. It currently employs 35.
Shares for the $310 million market cap company dropped 10 percent following the announcement, trading at $4.79 at 9 a.m. on August 2.
— Meghana Keshavana