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Orgenesis Inc . (NASDAQ:ORGS), a pharmaceutical company, has entered into a financial agreement with investor Jacob Safier, securing an additional $750,000 in funding, according to a recent SEC filing. This transaction amends a previous promissory note dated June 26, 2024, increasing the total loan amount to $1 million. The loan will accrue interest at an annual rate of 10% and is set to mature on December 31, 2024.
This strategic move by Orgenesis Inc., which operates under the name 03 Life Sciences since its incorporation in Nevada, allows for the prepayment of the loan in whole or in part without requiring the lender's prior written approval.
Under certain conditions, if Orgenesis or any of its subsidiaries raises at least $15 million through equity sales after the date of the note, the lender may demand full repayment of the principal and any accrued interest.
In addition to the loan, Orgenesis agreed to issue five-year warrants to Safier for purchasing up to 970,873 shares of common stock at $1.03 per share. If the company fails to repay the loan by the maturity date, additional warrants for the same number of shares and exercise price will be issued.
The agreement also outlines events of default that would require immediate repayment, including bankruptcy proceedings, breaches of the agreement after a cure period, and failure to make payments when due.
The issuance of warrants and the common stock of the company upon exercise of the warrants are exempt from registration under Section 4(a)(2) of the Securities Act, as they do not involve a public offering.
This financial arrangement underscores Orgenesis Inc.'s efforts to secure necessary capital for its operations. The information provided in this article is based on the company's SEC filing.
In other recent news, Orgenesis Inc. has announced a joint venture with Harley Street Healthcare Group (HSHG) to develop and commercialize wellness and longevity therapies worldwide. The partnership will utilize HSHG's healthcare network and Orgenesis' biotech innovations in a "Health-Wellness-as-a-Service" model.
By 2024, the venture aims to launch a suite of services including immune cell banking, preventative illness screening, and stem cell-based regenerative treatments in key global regions. HSHG has committed to invest up to $10 million over the next three years into both Orgenesis and the venture.
In addition, Orgenesis has expanded its equity incentive plan by 9 million shares and elected five new directors to its board. This comes after the departure of three board members. The company also entered into a strategic collaboration with Germfree to make cell and gene therapy treatments more affordable and accessible.
The partnership is expected to foster innovation in digital workflows and advanced quality management systems. These are the latest developments shaping the trajectory of Orgenesis Inc.
InvestingPro Insights
Orgenesis Inc.'s recent financial agreement is a crucial step in securing the funding needed for its operations. To provide further context, InvestingPro data reveals a market capitalization of $34.26 million, indicating the size of the company in the marketplace. Despite a challenging financial performance with a negative revenue growth of -96.97% over the last twelve months as of Q2 2024, there are signs of improvement with a quarterly revenue growth of 117.7% in Q2 2024.
InvestingPro Tips suggest that Orgenesis is expected to see net income growth this year, which could be a positive signal for investors looking for recovery signs. Moreover, analysts are also anticipating sales growth in the current year, aligning with the observed quarterly revenue uptick. For those interested in a deeper dive into Orgenesis's financial health and future prospects, InvestingPro offers additional tips and metrics.
As the company navigates through its financial challenges, highlighted by a significant operating income margin deficit of -3101.96%, these insights can be invaluable. Investors can explore further analysis and tips, including 13 additional InvestingPro Tips for Orgenesis at https://www.investing.com/pro/ORGS, which may provide a broader understanding of the company's financial trajectory and stock performance.
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