Orgenesis Inc. (NASDAQ:ORGS), a developer of advanced cell therapies, is set to raise roughly $9.24 million on a gross basis in another private placement to finance the expansion of its point-of-care cell-therapy platform.
Under the deal’s terms, a private placement of 2.2 million shares of the company’s stock has been arranged with select institutional investors, including The Phoenix Insurance Company and Sphera Global Healthcare Master Fund, at a strike price of $4.20 per share.
Additional warrants to purchase up to 1 million shares of Orgenesis stock at an exercise price of $5.50 have also been written.
READ: Orgenesis adds UC Davis to its point-of-care network for developing cell, gene therapy products
The offering is expected to close on or around January 23, provided closing conditions are met. In addition, the warrants can’t be exercised until six months have passed and they expire three years from their issuance date.
Orgenesis’s point-of-care platform is designed to develop and supply cell and gene products and therapies. With its introduction, hospitals are able to implement Orgenesis’s proprietary automated, closed systems and know-how to collect, process and supply cells for various treatments such as the manufacturing of CAR-T cell therapies.
The Germantown, Maryland-based company provides centralized contract development and manufacturing organization (CDMO) services, as well as localized point-of-care development and processing centers through its subsidiary Orgenesis Maryland Inc.