Recursion Pharmaceuticals Inc (NASDAQ:RXRX) shares are trading lower in Wednesday's after-hours session after the company announced a proposed offering of its common stock.

What Happened: After the market close on Wednesday, Recursion said it intends to offer and sell $200 million worth of its common stock in an underwritten public offering. All of the shares are being offered by Recursion.

The clinical-stage biotech company also said it plans to grant the underwriters a 30-day option to purchase up to an additional 15% of the shares being offered.

Recursion had $296.3 million in cash and cash equivalents as of March 31.

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

Recursion has built one of the most powerful supercomputers in the biotech space with the help of Nvidia. The two companies announced a multi-year collaboration last year.

Nvidia also reported investments in multiple companies, including Recursion, in a 13-F filing with the SEC earlier this year, which garnered investor attention and sparked a short-lived surge in Recursion stock.

According to the filing, Recursion is Nvidia's second-largest investment after Arm Holdings.