GERMANTOWN, Md. - Orgenesis Inc . (NASDAQ: NASDAQ:ORGS), a biotech company specializing in decentralized cell and gene therapies (CGTs), has announced a private placement agreement with certain accredited investors. The deal includes the sale of over 2.2 million shares of common stock and warrants at a purchase price of $1.03 per share, with the potential to raise gross proceeds of approximately $2.3 million.
The warrants, which are exercisable immediately, allow investors to purchase additional shares at $1.50 and $2.00 per share and will expire five years from the date of issuance. The expected closing date of the offering is Monday, subject to standard closing conditions.
This funding effort is part of Orgenesis's strategy to advance its CGT development projects towards commercialization. The company has been working since 2012 to unlock the potential of CGTs and introduced a decentralized processing approach in 2020, aiming to facilitate a more rapid and cost-effective way of delivering these therapies to patients.
The information in this article is based on a press release statement from Orgenesis Inc.
InvestingPro Insights
As Orgenesis Inc. (NASDAQ: ORGS) forges ahead with its private placement to fuel its cell and gene therapy projects, a glance at the company's financial health and market performance through InvestingPro reveals key insights. The company's market cap stands at a modest 21.71 million USD, reflecting its niche position in the biotech industry. Despite a challenging revenue growth trend, with a decrease of 5.26% over the last twelve months as of Q1 2023, Orgenesis boasts an impressive gross profit margin of 87.99% in the same period. This high margin underscores the company's strong potential to translate its biotech innovations into profitable outcomes once they reach commercialization.
InvestingPro Tips indicate that Orgenesis operates with a significant debt burden, which is an essential consideration for investors as the company seeks additional capital. The data also suggests that the company is not profitable over the last twelve months, which is typical for many biotech firms prioritizing research and development. However, analysts predict that the company will be profitable this year, offering a glimmer of hope for future financial stability.
From a market performance perspective, Orgenesis has experienced a strong return over the last month, with a 118.87% increase in its stock price, which could reflect investor confidence in the company's strategic initiatives and future prospects. This is further supported by a solid return over the last three months of 36.26%. However, it's worth noting that the company's stock is suggested to be in overbought territory, based on the Relative Strength Index (RSI), which could indicate a potential upcoming correction.
For those seeking to delve deeper into Orgenesis's financials and market potential, InvestingPro offers additional insights. With a total of 13 InvestingPro Tips available, investors can gain a comprehensive understanding of the company's position and prospects. To access these insights and more, consider using the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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