Recursion Pharmaceuticals Stock Plunges Wednesday: What’s Happening? – Recursive Pharmaceuticals (NASDAQ: RXRX)

Recursion Pharmaceuticals Inc RXRX Shares are trading lower in Wednesday’s after-hours session after the company announced a planned offering of its common stock.

What happened: After the market closed Wednesday, Recursion announced plans to offer and sell $200 million of its common stock in an underwritten public offering. All actions are offered by Recursion.

The clinical-stage biotechnology company also announced plans to grant underwriters a 30-day option to purchase up to an additional 15% of the shares on offer.

Recursion had $296.3 million in cash and cash equivalents as of March 31.

The proposed offering comes just days after Recursion held its annual investor day during which NVIDIA Corp. NVDA CEO Jensen Huang made an appearance to discuss the role AI will play in drug discovery and development in the future.

Recursion built one of the most powerful supercomputers in biotech with help from Nvidia. The two companies announced a multi-year collaboration last year.

Nvidia also reported investments in several companies, including Recursion, in a 13-F filing with the SEC earlier this year, which caught the attention of investors and sparked a short-lived rally in Recursion shares.

According to the filing, Recursion is Nvidia’s second-largest investment after Arm Holdings.

RXRX Price Action: Shares of Recursion Pharmaceuticals were down 8.33% in after-hours trading at $8.04 at press time, according to Benzinga Pro.

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