In a new regulatory filing, Invitae Corp (NYSE: OTC :)), a provider of medical laboratory services, disclosed its quarterly operating report for May 2024 to the US Bankruptcy Court for the District of New Jersey. The report, which was submitted on Monday, is a routine requirement of the company’s Chapter 11 bankruptcy proceedings, which begin on February 13, 2024.
The document, which has not been audited or reviewed by an independent accountant, was prepared specifically to meet the Bankruptcy Court’s reporting requirements. Invitae warns investors not to rely on this operating report for investment decisions, as it is not intended for that purpose. The report has a limited scope and duration and is subject to future adjustments and reconciliations.
Invitae’s filing also cautions that the data in the report may not reflect the company’s financial condition or operating results over the full reporting period and should not be viewed as representative of future results.
Since the delisting of Invitae common stock from the New York Stock Exchange on March 2, 2024, and subsequent deregistration pursuant to Section 12(b) of the Securities Exchange Act, the company’s stock has traded on the OTC Pink market under the symbol ” NVTAQ.”
This announcement is based on a press release statement.
In other recent news, Labcorp is set to acquire substantial assets from Invitae Corporation for $239 million in cash. The acquisition, which is part of Invitae’s financial restructuring under Section 363 of the US Bankruptcy Code, is pending court and regulatory approval.
Labcorp’s offer aims to ensure the continuity of Invitae’s customers, partners and employees, according to Invitae president and CEO Ken Knight. The sale, which includes a non-cash consideration, is expected to close in the third quarter of 2024, subject to court and regulatory approvals.
Invitae, currently operating as a debtor-in-possession, expects this sale to significantly reduce debt and settle obligations during the restructuring process. Labcorp, known for its diagnostic and drug development capabilities, operates in about 100 countries and has more than 67,000 employees.
This is the latest development for both companies.
InvestingPro Insights
As Invitae Corp (NYSE:NVTAQ) navigates Chapter 11 bankruptcy proceedings, financial metrics provided by InvestingPro offer a fresh snapshot of the company’s performance. The data shows that Invitae’s revenue for the last twelve months in Q3 2023 was $481.58 million, although the company experienced a 7.38% decrease in revenue over the same period. Quarterly revenue also saw a decline, with a 9.21% decline in Q3 2023.
The company’s gross profit for the last twelve months was $130.64 million, with a gross profit margin of 27.13%. Despite these figures, Invitae’s operating profit is very negative, which is -$485.58 million, which also shows an operating income margin of -100.83%. This represents a significant challenge in turning profits into operating income.
Investors looking at the stock’s performance will note its 6-month, YTD, and 1-year total price performance, which is strongly negative at -41.74%, -41.74%, and -66.33%. The next earnings date is set for August 8, 2024, which will be a critical time for stakeholders to evaluate Invitae’s restructuring efforts and future prospects.
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