NEW YORK (TheStreet) -- OvaScience (OVAS) stock is plunging by 27.20% to $7.12 on heavy trading volume late Thursday morning, after the company priced a public offering of common shares at a significant discount to recent share prices. 

The Waltham, MA-based fertility company priced a public offering of 7.15 million shares at $7 per share. 

This was 28% lower than Wednesday's closing price of $9.78 per share. The offering increased the number of shares outstanding by 26%, according to MarketWatch.

OvaScience plans to use the proceeds from the offering to fund the commercial expansion of its Augment treatment, for pre-commercial activities for its OvaPrime and OvaTure treatments and for other general corporate purposes. 

About 2.60 million shares of OvaScience have been traded so far today, well above its average trading volume of roughly 429,447 shares per day. 

Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D-.

Ovascience's weaknesses include its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

You can view the full analysis from the report here: OVAS

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.

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