Israeli cell therapy company Orgenesis Inc. (OTCQB: ORGS) has raised $10 million in a private placement. Orgenesis is developing a novel therapeutic technology dedicated to converting a patient's own cells into functioning insulin-producing cells as a treatment for diabetes.
The company said it has raised and fulfilled its obligation for a $10 million debt or equity financing, which allows Orgenesis to finalize the acquisition of MaSTherCell, an advanced cell therapy and bio-manufacturing company. Belgium-based MaSTherCell will continue to function and be managed as a separate company.
Orgenesis CEO Vered Caplan said, "We are pleased to report that the unwind of MaSTherCell has been permanently waived.We have raised the requisite amount of capital that was required to meet the threshold. We are now in a more secure position to continue our efforts in expanding our business and putting in place the necessary steps towards attaining GMP and other requirements leading up to human clinical trials of our cellular trans-differentiation technology as a potential treatment for Type 1 Diabetes."
With respect to the equity financing, the company sold units priced at $0.52 in a private placement consisting of 8,227,647 shares of Orgenesis's common stock and 8,227,647 three year warrants to purchase up to an additional share of the company's Common Stock at a per share exercise price of $0.52. The units were issued pursuant to subscription agreements for aggregate proceeds to the company of $4,278,376. The company has also raised an aggregate of $950,000 in principal amount of convertible notes issued since June 2015 to accredited investors..
Orgenesis will also inject additional capital into MaSTherCell for its expansion and growth as a leading subcontractor. These funds will allow the company to fulfill its vision as a rapidly growing and innovative cell manufacturer for its current and future customers. MaSTherCell will also provide manufacturing services for Orgenesis's clinical trials going forward.
Orgenesis’ technology is based on IP licensed from Israel’s Sheba Medical Center in Tel Hashomer, Ramat Gan. The company's portfolio is based on the groundbreaking work and two decades of research by Prof. Sarah Ferber.
Pearl Cohen represented Orgenesis in the private placement and in the acquisition of MaSTherCell, an advanced cell therapy and bio-manufacturing company based in Europe. Senior Partners Mark Cohen, Chair of Pearl Cohen's Life Sciences Group, and Senior Partner David Aboudi represented Orgenesis in the financing and transaction, and represents the Company in commercial and intellectual property matters.
Published by Globes [online], Israel business news - www.globes-online.com - on December 23, 2015
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