This Analyst Believes Precigen's Non-Healthcare Divesture Removes Financial Overhang - Precigen (NASDAQ:PGEN)

Yesterday, Precigen Inc PGEN agreed to sell its non-healthcare subsidiary to URUS.
HC Wainwright says they are encouraged by the divestiture of the company's non-core business and believe management deserves much credit, especially against the backdrop of the challenging macro environment.
Related: Why Precigen Shares Are Gaining Today?
The analyst believes the completed transaction would remove the financial overhang related to the approximate $200 million convertible notes that mature in July 2023.
The company ended the March quarter with cash and equivalents of $142.1 million.
"We believe this transaction not only strengthens Precigen's balance sheet by providing a substantial amount of non-dilutive cash but also helps focus the company's resources on developing its clinical assets," the analyst added.
The Trans Ova divestiture could potentially drive more investors' attention onto Precigen's healthcare-focused portfolio, says HC Wainwright.
The firm maintains its Buy rating on PGEN with a price target of $10 per share.
Price Action: PGEN shares are down 9.20% at $1.47 during the market session on the last check Wednesday.