In a recent regulatory filing, Invitae Corp (NYSE:OTC:NVTAQ), a medical laboratory services provider, disclosed its monthly operating report for May 2024 to the U.S. Bankruptcy Court for the District of New Jersey. The report, submitted on Monday, is a routine requirement of the company's ongoing Chapter 11 bankruptcy proceedings, which were initiated on February 13, 2024.
The document, which has not been audited or reviewed by independent accountants, was prepared exclusively to meet the Bankruptcy Court's reporting requirements. Invitae cautions investors against relying on this operating report for investment decisions, as it was not intended for that purpose. The report is of limited scope and duration and is subject to future adjustments and reconciliation.
Invitae's filing also provides a reminder that the data in the report may not be indicative of the company's financial condition or operating results for a full reporting period and should not be viewed as representative of future results.
Since the delisting of Invitae's common stock from the New York Stock Exchange on March 2, 2024, and its subsequent deregistration under Section 12(b) of the Securities Exchange Act, the company's shares have been trading on the OTC Pink market under the symbol "NVTAQ."
This announcement, 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 U.S. Bankruptcy Code, is awaiting court and regulatory approval.
Labcorp's bid aims to ensure continuity for Invitae's customers, partners, and employees, according to Invitae's president and CEO, Ken Knight. The sale, which includes non-cash considerations, is anticipated to be completed 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 its debt and meet its obligations during the restructuring process. Labcorp, known for its diagnostic and drug development capabilities, operates in approximately 100 countries and has over 67,000 employees.
These are the latest developments for both companies.
InvestingPro Insights
As Invitae Corp (NYSE:NVTAQ) navigates through its Chapter 11 bankruptcy proceedings, the financial metrics provided by InvestingPro offer a snapshot of the company's recent performance. The data shows that Invitae's revenue in the last twelve months as of Q3 2023 stood at $481.58 million, although the company experienced a revenue decline of 7.38% during the same period. The quarterly revenue also saw a downturn, with a 9.21% drop 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 income was deeply in the negative, at -$485.58 million, which also reflects in a stark operating income margin of -100.83%. This indicates significant challenges in converting revenues into operating income.
Investors looking at the stock's performance will note the 6-month, YTD, and 1-year price total returns, which have been steeply negative at -41.74%, -41.74%, and -66.33% respectively. The next earnings date is set for August 8, 2024, which will be a critical time for stakeholders to assess Invitae's ongoing restructuring efforts and future prospects.
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