Private equity Metalmark Capital Partners has agreed to invest up to $50 million in Orgenesis Inc's U.S.-based ORGS point of care services subsidiary, Morgenesis LLC.
What Happened: The investment will be made at a pre-money valuation of $125 million, consisting of an upfront investment of $30 million and two future investments of $10 million each, subject to achieving certain milestones.
The initial investment of $30 million will consist of $20 million in cash and conversion of the convertible loan Metalmark previously provided to Morgenesis in August 2022.
Orgenesis created Morgenesis to streamline all existing POCare Service business units into one unified entity.
The Orgenesis parent company will own the majority of Morgenesis immediately following the initial closing while continuing to support its licensed therapeutic pipeline developing products in various fields such as metabolic diseases and virally induced diseases.
Why It Matters: Morgenesis will use the investment to develop and expand its new POCare Services business globally, with an initial focus on the U.S.
This includes the development of additional POCare Centers and the Orgenesis Mobile Processing Units and Labs (OMPULs). OMPULs will allow Orgenesis to provide biotech companies and hospital systems with a global cGMP supply for their cell and gene therapy products at the point of care, with the ability to grow and scale cell and gene treatments rapidly.
Price Action: ORGS shares closed at $1.39 on Friday.
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