NVTA Stock: Invitae Plunges 78% on the Brink of Bankruptcy


  • Invitae (NVTA) stock tumbled yesterday amid a report that the firm is going to declare bankruptcy soon. The shares were halted for news pending.
  • Many investors now expect the firm to declare bankruptcy this week.
  • Once a high flier, NVTA stock has plunged as its debt soared in recent years.
NVTA stock - NVTA Stock: Invitae Plunges 78% on the Brink of Bankruptcy

Source: rafapress / Shutterstock.com

Invitae (NYSE:NVTA) stock fell as much as 78% yesterday before it was ultimately halted because undisclosed news about the firm was pending. Many investors now expect that the SoftBank (OTCMKTS:SFTBY) backed genetic testing specialist will file for bankruptcy before the end of this week.

Invitae Is Reportedly Looking to Declare Bankruptcy

Invitae “is preparing to file for bankruptcy within weeks,” The Wall Street Journal reported late yesterday afternoon, citing unnamed sources. NVTA has hired Kirkland & Ellis, Moelis & Company, and FTI Consulting to help it find a way of dealing with its $1.5 billion debt, the newspaper added.

Kirkland & Ellis represents companies that have declared bankruptcy, while Moelis and FTI Consulting have also worked with such firms.

More Information About Invitae

NVTA refused to respond to questions from Seeking Alpha on the issue. The firm, however, referred to a statement that it had made in conjunction with its third-quarter results, which were unveiled in November:

“…engaging with stakeholders to strengthen the balance sheet, and the Board of Directors has formed a special committee focused on improving the Company’s capital structure. The Company is exploring a number of options, including, but not limited to, raising capital, asset sales, business and R&D refocusing efforts, capital expenditure and operating expense reductions and addressing its debt obligations.”

In 2020, the price of NVTA stock exceeded $50. The shares were halted yesterday at $0.089.

The firm has acquired multiple companies in recent years, while its debt has greatly increased.

On Jan. 22, DNA testing company Natera (NASDAQ:NTRA) reported that it had bought “assets relating to Invitae’s non-invasive prenatal screening and carrier screening business” for $52.5 million. However, only $10 million of that sum was paid upfront, while the remainder consists of performance-based payments that depend on the assets’ performance.

The Price Action of NVTA Stock

As of early morning trading today, NVTA stock had slumped 84% in the last month, 87% in the preceding three months, and 96% in the preceding 12 months.

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks. 

Read More: Penny Stocks — How to Profit Without Getting Scammed 

On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been SMCI, INTC, and MGM. You can reach him on Stocktwits at @larryramer.

Article printed from InvestorPlace Media, https://investorplace.com/2024/02/nvta-stock-invitae-plunges-78-on-the-brink-of-bankruptcy/.

©2024 InvestorPlace Media, LLC