Orgenesis Announces Stock Repurchase Plan of Up to $10 Million
Orgenesis Inc. (NASDAQ: ORGS) announced a stock repurchase plan, allowing up to $10 million in common stock buybacks. The plan begins on May 29, 2020, and will be funded from the company's working capital, which was approximately $107 million as of March 31, 2020. This buyback reflects management's belief that the current share price does not represent the company's true value. CEO Vered Caplan highlighted the positive impact of the recent sale of Masthercell, which generated around $127 million, bolstering the company's balance sheet and growth prospects in cell and gene therapies.
- Authorization of a $10 million stock repurchase plan, indicating confidence in the company's value.
- Strong cash position of approximately $107 million as of March 31, 2020, supporting the buyback.
- Successful sale of Masthercell for about $127 million, enhancing financial stability.
- Growth potential in the Cell & Gene Therapy platform, strengthening future revenue opportunities.
- None.
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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
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
Vered Caplan, CEO of Orgenesis, commented, “Earlier this year, we completed the sale of Masthercell for approximately
About Orgenesis
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:
David Waldman
Crescendo Communications, LLC
Tel: 212-671-1021
ORGS@crescendo-ir.com