Organovo Holdings Inc (NASDAQ:ONVO) has announced that it would be selling 9 million shares of its common stock, through an underwritten public offering, priced at $2.75 per share. This would also be accompanied by a 30-day option to purchase 1.35 million additional shares of ONVO’s common shares, under the same conditions. As such, the company expects to raise a gross total of $25 million, through this offering. The customary conditions are expected to be fulfilled by October 25, 2016, which has been set as the expected closing date for the offering.

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The company plans to make use of these funds for general corporate purposes and as working capital. Evercore ISI and Jefferies LLC have been hired as the joint book-running managers for the offering. ONVO has been declining since the announcement of the news, since the offering has been priced well below its share value, from Wednesday, of $3.49.

Earlier, Organovo announced its unaudited financial results for the 2Q2017 and also issued an outlook for the full FY2017. The full results are not due to be released, until November 3, 2016. The company recorded revenue of approximately $1.4 million, recording a surge of 357%, on a year-over-year basis. This was mainly attributable to the company’s product and services. By the end of the 1H2017, the company had a cash position of approximately $51.7 million, down by $1.8 million from the 1Q2017.

In its updated guidance for the FY2017, Organovo claimed that it expects to generate between $4.5 million and $6.2 million for the period, as compared to just $1.5 million in the FY2016. In addition to this, the company also expects to use between $31 and $34 million of its cash, during the current year. Moreover, ONVO continues to increase its marketing efforts, for its liver and kidney tissue products, which would further improve its revenue.

Organovo Holdings Inc (NASDAQ:ONVO) had a trade volume of 9.87 million and closed at a share price of $2.96, after having lost 15.19% of its share value, during the October 20 trading session.