Orgenesis forms joint venture with Harley Street Healthcare Group

Orgenesis (NASDAQ:ORGS) Inc., a biotechnology company, has entered into a strategic partnership with Harley Street Healthcare Group (London) Plc Ltd. The agreement, signed on August 9, 2024, outlines the formation of a joint venture to develop and commercialize wellness and longevity-related services, including personalized preventative care and regenerative therapies.

The joint venture, yet to be named, will initially be owned 49% by Orgenesis and 51% by Harley Street Healthcare Group. The ownership stakes will later be adjusted based on each party’s contributions. The services will be offered on a subscription basis within various global territories, including the United Kingdom, UAE, Canada, and others.

Harley Street Healthcare Group has committed to investing $5 million in Orgenesis common stock by the end of December 2024, with the purchase price being the greater of $1.03 per share or a 5% premium to the closing price on the Nasdaq at the time of investment. This investment will grant Harley Street Healthcare Group warrants to purchase additional shares at a price set by similar terms.

Furthermore, Harley Street Healthcare Group has the option to invest an additional $5 million by the end of 2025 and may nominate a board member to Orgenesis' board of directors, subject to regulatory approvals.

Orgenesis will contribute its intellectual property to the joint venture through a licensing agreement, responsible for the manufacturing and selling of products in the designated territories. Orgenesis will also support the implementation of its products and quality management system in these regions.

The parties may provide additional funding for the project, which could result in equity changes within the joint venture. They also reserve the right to buy out each other's interest in the joint venture, with the valuation determined by an independent third party.

This information is based on a press release statement.

In other recent news, Orgenesis Inc . has been making significant moves to bolster its financial position and expand operations. The company recently secured a $2.3 million investment and entered a strategic collaboration expected to generate over $8 million in initial payments. Additionally, Orgenesis regained full ownership of Octomera, a strategic CGT processing subsidiary, and received non-dilutive grants totaling €3.5M EUR from the Walloon Government in Belgium.

In a major corporate update, the company announced an expansion of its equity incentive plan by 9 million shares following its 2024 annual meeting of stockholders. This move is part of Orgenesis' broader strategy to incentivize and attract talent. Furthermore, the company reported the departure of three board members and the election of five new directors, each set to serve a one-year term.

In a strategic collaboration and asset purchase agreement, Orgenesis has partnered with Germfree, aiming to make cell and gene therapy treatments more affordable and accessible. This partnership is expected to foster innovation, especially in digital workflows and advanced quality management systems, setting a new standard for the industry.

These are the recent developments that have been shaping the trajectory of Orgenesis Inc.

InvestingPro Insights

As Orgenesis Inc. embarks on its strategic partnership with Harley Street Healthcare Group, the company's financial metrics and market performance provide a backdrop to the potential impact of this collaboration. With a market capitalization of $47.16 million, Orgenesis is positioned as a small-cap biotech player, which often entails a higher risk-reward profile for investors.

An InvestingPro Tip highlights that Orgenesis has experienced a significant return over the last week, with a 26.64% price total return, reflecting heightened investor interest possibly triggered by the recent strategic developments. Additionally, the company has seen a strong return over the last three months, up by 48.34%, suggesting a positive market sentiment in the medium term.

Despite these robust short-term returns, Orgenesis has not been profitable over the last twelve months, which is a crucial consideration for investors looking at long-term viability. The company's gross profit margin stands at -101.06%, indicating that it is currently spending more to produce its goods than it earns from their sale, a situation that could be improved by the joint venture's potential success.

For those closely following Orgenesis' financial health, the company is trading near its 52-week high, at 93.5% of this threshold, which could signal confidence in its future prospects or, conversely, suggest a cautious approach if the stock is perceived as overvalued. Investors seeking a deeper dive into Orgenesis can find additional insights, with 14 more InvestingPro Tips available at https://www.investing.com/pro/ORGS, offering a comprehensive analysis to guide investment decisions.

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