Invitae issued over 1 Billion USD Convertible Senior Notes in 2021

Invitae Corporation announced its 2021 Q2 financial results on August 3rd. As a result, the total revenue was up significantly of 151.8% (YoY, 3 months). However, Invitae is continuously recording net loss and negative cash flow. In this regard, loss from operation was down 5.8% (YoY, 3 months). In addition, net loss was down 22.5%.

Invitae issued 1.12 billion USD convertible senior notes since the beginning of 2021. This amount corresponds to 46.1% of Invitae’s shareholders’ equity at the end of 2021 Q2. We believe that the large amounts of convertible senior notes is one of main causes of decline in Invitae’s stock price. 

Currently, Invitae’s shareholders’ equity ratio is 48.5%. In addition, its current ratio is 1211.5%. Thus, its financial condition is not unstable. However, we do not expect a breakthrough in its stock prices at this moment. We believe that the further reduction of the net loss is necessary.

Finally, Invitae announced in this April the investment from one of subsidiaries of SoftBank Group. Its high growth potential and the promising future of genetic testing suggest that the company is continuously in spotlight.

Important Notice 

  1. Watanabe & Brothers’ Investment is holding shares of Invitae Corporation. 
  2. This report is provided solely for informational purpose and not intended for the purpose of soliciting investment in, or as a recommendation to purchase or sell any specific products. 
  3. Any opinions or statements expressed in this report are based on the author’s personal and subjective views, and are not the official views of the organization to which the author belongs.  In addition, although we have done our best efforts in making accurate assessments on the original financial statements, we cannot guarantee any complete accuracy of this report. We do not guarantee either that any future forecasts referred to in this report will certainly be realized. Investment in listed stocks, ETFs, etc. should be carried out under the responsibility of each investor, and even if the investor who read this report suffers a loss due to investment activities, Watanabe & Brothers’  Investment is not responsible for any liability.
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