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Orgenesis unveils plans to repurchase up to $10 million in stock

Published: 09:40 15 May 2020 EDT

Orgenesis - Orgenesis unveils plans to repurchase up to $10 million in stock
As of March 31, 2020, Orgenesis had cash on hand of approximately $107 million

Orgenesis Inc (NASDAQ:ORGS) has unveiled plans to repurchase up to $10 million of its own stock from time to time on the open market or in privately negotiated block transactions.

The cell and gene therapies group said the repurchase plan, which will commence on May 29, will be funded through its existing working capital, adding that as of March 31 it had cash on hand of approximately $107 million.

READ: Orgenesis launches new cell-based vaccine platform targeting coronavirus

The timing and amount of any shares repurchased will be subject to management discretion, Orgenesis said, and it will depend upon a variety of factors including general and business market conditions, corporate and regulatory requirements, share price, and alternative investment opportunities.

Any repurchased shares will be retired and returned to the company’s treasury.

In a statement, Vered Caplan, chief executive of Orgenesis, said: “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.”

She added: “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 aiming to accelerate the commercialization of transforming the delivery of cell and gene therapies while lowering costs.

Contact the author Calum Muirhead at calum@proactiveinvestors.com

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