Orgenesis Announces Stock Repurchase Plan of Up to $10 Million
GERMANTOWN, Md., May 15, 2020 (GLOBE NEWSWIRE) -- Orgenesis Inc. (NASDAQ: ORGS) (“Orgenesis” or the “Company”), a pioneering global biotech company committed to accelerating commercialization and transforming the delivery of cell and gene therapies (CGTs) while lowering costs, announces that its Board of Directors has authorized a repurchase plan (the “Repurchase Plan”) of up to $10 million of the Company’s common stock from time to time on the open market or in privately negotiated block transactions.
The timing and amount of any shares repurchased shall be subject to management’s discretion and will depend upon a variety of factors including general and business market conditions, corporate and regulatory requirements, share price, and alternative investment opportunities. Any share repurchases shall be in accordance with the Company’s repurchase plan under Rule 10b-18 under the Securities Exchange Act of 1934. The Repurchase Plan shall commence on May 29, 2020. The Repurchase Plan does not obligate the Company to acquire any specific number of shares in any period, and may be expanded, extended, modified, suspended or discontinued by the Board at any time. Any repurchased shares will be retired and returned to the Company’s treasury.
The Repurchase Plan will be funded using the Company’s working capital. As of March 31, 2020 the Company had cash on hand of approximately $107 million. As of May 8, 2020, Orgenesis had approximately 22 million shares of common stock outstanding.
Vered Caplan, CEO of Orgenesis, commented, “Earlier this year, we completed the sale of Masthercell for approximately $127 million in net proceeds. Not only does this transaction strengthen our balance sheet, but it clearly illustrates our ability to create significant value for shareholders. Nevertheless, we are even more excited about the growth prospects now for our Cell & Gene Therapy (CGT) Biotech Platform, which we believe provides a pathway for groundbreaking autologous therapies to become commercially available on an industrial scale and at prices accessible to large populations. Since the beginning of this year alone, we are making significant traction building our pipeline of advanced POCare Therapeutics, broadening our suite of POCare Technologies, and expanding our POCare Network with some of the leading hospitals and research institutes in the world. I truly believe Orgenesis is well positioned to lead the CGT industry by lowering costs, accelerating commercialization and transforming the delivery of CGTs. For this reason, we are excited to announce board approval for the stock buyback at this time given the current share price, which we do not believe reflects the underlying value of the business. Between upcoming catalysts and opportunistic share repurchases, we are committed to maximizing long-term shareholder value.”
Orgenesis is a pioneering global biotech company which is unlocking the full potential of personalized therapies and closed processing systems through its Cell & Gene Therapy Biotech Platform, with the ultimate aim of providing life changing treatments at the Point of Care to large numbers of patients at low cost. The Platform consists of: (a) POCare Therapeutics, a pipeline of licensed cell and gene therapies (CGTs), and proprietary scientific knowhow; (b) POCare Technologies, a suite of proprietary and in-licensed technologies which are engineered to create customized processing systems for affordable point of care therapies; and (c) POCare Network, a collaborative, international ecosystem of leading research institutes and hospitals committed to clinical development and supply of CGTs at the point of care. By combining science, technologies and a collaborative network, Orgenesis is able to identify the most promising new therapies and provide a pathway for them to reach patients more quickly, more efficiently and at scale, thereby unlocking the power of cell and gene therapy for all. Additional information is available at: www.orgenesis.com.
Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements which are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. These forward-looking statements involve substantial uncertainties and risks and are based upon our current expectations, estimates and projections and reflect our beliefs and assumptions based upon information available to us at the date of this release. We caution readers that forward-looking statements are predictions based on our current expectations about future events. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Our actual results, performance or achievements could differ materially from those expressed or implied by the forward-looking statements as a result of a number of factors, including, but not limited to, certain risks and uncertainties relating to the stock repurchase plan, including our stock price, the trading volume of our stock, the nature of other investment opportunities presented to us from time to time, our cash flows from operations and general economic conditions and risks and uncertainties relating to our business, including our reliance on, and our ability to grow, our point-of-care cell therapy platform, our ability to effectively use the net proceeds from the sale of Masthercell, our ability to achieve and maintain overall profitability, the development of our POCare strategy, the sufficiency of working capital to realize our business plans, the development of our trans-differentiation technology as therapeutic treatment for diabetes which could, if successful, be a cure for Type 1 Diabetes; our technology not functioning as expected; our ability to retain key employees; our ability to satisfy the rigorous regulatory requirements for new procedures; our competitors developing better or cheaper alternatives to our products and the risks and uncertainties discussed under the heading "RISK FACTORS" in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31 2019, and in our other filings with the Securities and Exchange Commission. We undertake no obligation to revise or update any forward-looking statement for any reason.
Contact for Orgenesis:
Crescendo Communications, LLC
Released May 15, 2020