Invitae Shares Are Trading Higher On SoftBank's Potential $1.2B Debt Investment: WSJ

  • Japanese technology firm SoftBank Group Corp SFTBY SFTBF is planning to infuse around $1.2 billion via convertible debt into genetic-testing provider Invitae Corp NVTA, the Wall Street Journal reports.
  • The convertible debt investment will help Invitae to expand its platform utility. The notes have an initial conversion price of $43.18 per share, signifying a 20% premium to the company’s trailing 5-day average as of April 1.
  • Invitae’s shares have tripled in a year. The stock closed at $39.19 last Thursday, hitting a market valuation of $7.7 billion. 
  • SoftBank’s investments are aimed at biotech and life-science portfolio expansion. It has recently invested in multiple U.S. life-sciences company initial public offerings (IPOs). SoftBank’s public holdings included Pacific Biosciences Of California Inc PACB4D Molecular Therapeutics Inc FDMT, and AbCellera Biologics Inc ABCL.
  • Price action: NVTA shares traded higher by 9.9% at $42 in the premarket session on the last check Monday.
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