GERMANTOWN, Md. - Orgenesis Inc . (NASDAQ:ORGS), a global biotech company, has announced a 1-for-10 reverse stock split of its common stock, set to take effect after market close on September 24, 2024. The move is aimed at regaining compliance with Nasdaq's minimum bid price requirement for continued listing.
The reverse stock split will see the number of issued and outstanding shares reduced from approximately 47.7 million to 4.77 million. Proportionally, the total authorized shares of common stock will decrease from 145.8 million to 14.58 million. This consolidation will affect all shareholders uniformly and will not change their percentage ownership interests, except where fractional shares are involved.
Stockholders who would otherwise hold a fraction of a share will receive a cash payment based on the closing price of Orgenesis's common stock on September 24, 2024. The new CUSIP number for the company's common stock following the reverse split will be 68619K303.
The reverse split will also proportionately adjust the number of shares available for issuance under the company's equity incentive plans and the terms of stock options, warrants, and convertible notes. Securities Transfer Corporation will serve as the exchange agent for the reverse stock split, providing instructions to stockholders on how to exchange their shares.
Orgenesis focuses on advancing cell and gene therapies (CGTs) towards commercialization, while also fostering partnerships to create a globally harmonized pathway for these therapies to reach more patients. The company's strategy includes a decentralized approach to processing, which has been a part of its model since 2020.
This announcement is based on a press release statement from Orgenesis Inc. and contains forward-looking statements about the potential impact of the reverse stock split and the company's efforts to regain compliance with Nasdaq's listing requirements. These statements are not guarantees of future performance and are subject to risks and uncertainties.
In other recent news, Orgenesis Inc. has reported promising results in a study of its CD19 CAR-T therapy, ORG-101, for Acute Lymphoblastic Leukemia treatment. The company also secured additional funding of $750,000 from investor Jacob Safier, raising the total loan amount to $1 million. Orgenesis has established a joint venture with Harley Street Healthcare Group (HSHG) aiming to develop and commercialize wellness and longevity therapies worldwide, with HSHG committing to invest up to $10 million over the next three years.
Orgenesis has also expanded its equity incentive plan by 9 million shares and elected five new directors to its board. A strategic collaboration with Germfree has been announced to make cell and gene therapy treatments more affordable and accessible. These recent developments indicate the company's effort to secure necessary capital for its operations and foster innovation in digital workflows and advanced quality management systems.
InvestingPro Insights
In light of Orgenesis Inc.'s recent announcement regarding a reverse stock split, investors may be seeking additional context on the company's financial health and market performance. InvestingPro data provides a snapshot of the company's current financial metrics, which could offer some perspective on the strategic decision.
Orgenesis's market capitalization stands at a modest $24.28 million, reflecting the company's size within the biotech industry. Despite the challenges, analysts on InvestingPro are forecasting a brighter future, with expectations of net income growth and sales growth in the current year. These InvestingPro Tips suggest that the company's efforts in advancing cell and gene therapies may begin to bear financial fruit, aligning with its strategic goals.
However, the stock has faced significant pressure recently, with a one-week price total return showing a decline of 13.04%, and a more stark one-month price total return of -29.41%. This performance may have contributed to the decision to undergo a reverse stock split in an attempt to stabilize stock value and maintain Nasdaq listing compliance.
InvestingPro also notes that Orgenesis does not pay a dividend to shareholders, which may influence investment decisions for those seeking regular income streams from their investments. For investors interested in deeper analysis, InvestingPro offers additional tips on Orgenesis, providing a more comprehensive view of the company's financial standing and market potential. As of the latest update, there are 11 additional InvestingPro Tips available for Orgenesis at https://www.investing.com/pro/ORGS.
These insights, along with the upcoming reverse stock split, could be critical for shareholders and potential investors as they assess Orgenesis's future in a highly competitive and innovative biotech marketplace.
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