Alpha Teknova tumbles on planned stock offering
BUZZ-Alpha Teknova tumbles on planned stock offering ** Shares of Alpha Teknova TKNO.O, which makes reagents for the life science industry, tumble 24% post-market to $5.60 as it seeks equity raise
** TKNO kicks off stock offering without disclosing deal size
** TD Cowen and William Blair are joint bookrunners
** Co intends to use net offering for general corporate purposes, including potential repayment of debt, and may use a portion to acquire or invest in other businesses, products, and technologies
** Hollister, California-based firm has ~53.7 mln shares outstanding for roughly $400 mln market cap
** Co estimates Q3 rev of $12.5-$12.7 mln and net loss of $3.49-$3.69 mln, and $16.6 mln of cash and short term investments as of Sept 30
** TKNO stock closed up 8.7% at $7.39 on Tues, up ~94% YTD
** 7 of 8 analysts rate the stock "strong buy" or "buy", 1 "hold"; median PT $9.50, per LSEG
(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))