WHITE PLAINS, NY--(Marketwired - December 18, 2013) - Orgenesis, Inc. (OTCQB: ORGS), a development-stage company with a novel regenerative medicine technology that converts a diabetes patient's liver cells into functioning insulin-producing cells, has entered into a $3 million common stock purchase agreement with Kodiak Capital Group LLC, a Newport Beach, Calif.-based institutional investor.
Orgenesis has agreed to file a registration statement with the U.S. Securities & Exchange Commission (SEC) covering the shares that may be issued to Kodiak under the terms of the common stock purchase agreement.
After the SEC has declared the related registration statement effective, Orgenesis has the right at its sole discretion and over a period of one year to sell up to $3 million of its common stock to Kodiak under the terms set forth in the agreement. Proceeds from this transaction will be used to fund the company's business development and for general corporate purposes.
"We welcome Kodiak Capital as a strategic partner to help us advance our work towards establishing human clinical trials for our novel cell therapy for insulin dependent diabetes patients," said Sav DiPasquale, Chief Executive Officer of Orgenesis.
Ryan Hodson, Managing Director of Kodiak, said, "Orgenesis represents another key Life Sciences partner in our portfolio and we look to work closely with them to help bring their technology to market."
Additional details regarding the financing are included in a Form 8-K filed with the SEC on December 17, 2013.
About Kodiak Capital Group, LLC
Kodiak is an institutional investor headquartered in Newport Beach, CA. Kodiak makes private investments in public and private entities utilizing proprietary equity and debt instruments. These investments provide long-term strategic capital offering companies certainty, flexibility and consistency. Kodiak's investments are in a wide range of industries emphasizing alternative energy, consumer products, life sciences, natural resources, and social media technology. For more information, visit www.kodiak-capital.us.
About Orgenesis, Inc.
Orgenesis (ORGS) is a development stage company with a novel therapeutic technology that employs a molecular and cellular approach directed at converting a patient's own liver cells into functional insulin producing cells, as a treatment for diabetes. Orgenesis believes that converting the diabetic patient's own tissue into insulin-producing cells overcomes the problem of donor shortage and removes the risk of transplant rejection. If successful, this could mean the end of diabetes, as we now know it. For more information visit: www.orgenesis.com.
Notice Regarding Forward-Looking Statements
This news release contains "forward-looking statements" which are not purely historical. Such forward-looking statements include, among other things, the expectations of management that our regeneration technology can be developed as therapeutic treatment for diabetes which could, if successful, mean the end of diabetes as we know it; that Orgenesis will successfully register shares and be able to sell them to Kodiak. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits Orgenesis will obtain from them. Actual results could differ from those projected in any forward-looking statements due to numerous factors, including, among others, that we may not be able to clear a registration statement, or that even if we clear the registration statement, we may decide not to sell shares to Kodiak at the price contracted; the potential failure of development candidates to advance through preclinical studies or demonstrate safety and efficacy in clinical testing and the ability to pass clinical trials so as to move on to the next phase; our ability to retain key employees; our ability to finance development or satisfy the rigorous regulatory requirements for new medical procedures; and competitors may develop better or cheaper alternatives to our products. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Investors should refer to the risk factors disclosure outlined in our periodic reports filed from time-to-time with the Securities and Exchange Commission.