Alpha Teknova Shares Sink 23% After Hours: Here's Why

Alpha Teknova Inc (NASDAQ:TKNO) shares fell 22.87% to $5.70 in after-hours trading Tuesday after the company priced a $40 million public offering of common stock at $5 per share.

Alpha Teknova produces critical reagents for life sciences research, diagnostics and therapeutic development.

$40 Million Stock Offering

Alpha Teknova priced 8 million shares at $5 each, expecting to raise $40 million in gross proceeds. TD Cowen and William Blair are serving as joint book-running managers, with Craig-Hallum as lead manager. Underwriters have a 30-day option to purchase up to an additional 1.2 million shares.

The offering is expected to close around Oct. 22, subject to customary closing conditions. Teknova plans to use the net proceeds for general corporate purposes, potentially including debt repayment.

Preliminary Q3 Results

Separately, Teknova estimated third-quarter revenue of $12.5 million to $12.7 million, representing 19% to 21% growth from a year earlier. Gross margin is estimated at 36% to 38%, while adjusted EBITDA is expected to range from negative $1 million to negative $1.2 million.

The company estimated cash and short-term investments of $16.6 million as of Sept. 30. The preliminary figures are unaudited and may change before final results are reported.

Trading Metrics, Technical Analysis

Alpha Teknova has a market capitalization of approximately $397 million.

Over the past year, Alpha Teknova shares have gained about 31.49%.

The stock has traded between a 52-week high of $9.47 and a 52-week low of $1.91.

Benzinga’s Edge Stock Rankings show a negative price trend in the short term and positive price trends in the medium and long term.

Price Action: TKNO closed regular trading at $7.39 on Tuesday, up 8.68% for the session.

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