NEW YORK (TheStreet) -- Shares of Organovo Holdings (ONVO) were slipping, sharply lower by 15.49% to $4.38 in early market trading Thursday, after the company priced its public offering of common stock this morning.
The medical research device maker announced that it priced 9.425 million shares of its common stock at $4.25 per share.
Organovo has also granted the underwriters a 30-day option to buy an additional 1,413,750 shares of common stock on the same terms and conditions.
The proceeds from the offering are expected to total about $40.1 million before deducting discounts, commissions, and other expenses.
The company expects the offering to close on June 23.
Organovo is a development-stage company focused on developing and commercializing functional human tissues.
Its models can be used in drug discovery and development, biological research, and as therapeutic implants for the treatment of damaged or degenerating tissues and organs.
Separately, TheStreet Ratings team rates ORGANOVO HOLDINGS INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate ORGANOVO HOLDINGS INC (ONVO) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as 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."