Recursion Pharmaceuticals Inc ( RXRX ) shares are trading lower Thursday after the company announced a proposed offering of its common stock.

What Happened: Recursion announced that it intends to offer and sell 30,769,230 shares of its common stock for $6.50 per share in an underwritten public offering. 

The clinical-stage biotech company also said it plans to grant the underwriters a 30-day option to purchase up to an additional 4,615,384 of the shares being offered. All of the shares are being sold by Recursion.

Recursion expects to receive total gross proceeds of approximately $200 million. The offering is expected to close on or about June 28. Recursion had $296.3 million in cash and cash equivalents as of March 31.

Why It Matters: The proposed offering comes just days after Recursion held its annual investor day. NVIDIA Corp ( NVDA ) CEO Jensen Huang made an appearance at the event to discuss the role AI will play in drug discovery and development in the future.

Recursion and Nvidia ( NVDA ) announced a collaboration last year to accelerate development of AI foundation models for biology. Nvidia ( NVDA ) also reported investments in multiple companies, including Recursion, in a 13-F filing with the SEC in February. According to the filing, Recursion is Nvidia’s second-largest investment after Arm Holdings.

See Also: Former OpenAI Scientist’s AI Startup Bags $16M Investment From Sequoia Capital

RXRX Price Action: Recursion Pharmaceuticals shares were down 20.1% at $7.00 at the time of writing, according to Benzinga Pro.