On October 17, 2024, Orgenesis (NASDAQ:ORGS) Inc., a biopharmaceutical company, received formal notification from the Nasdaq Stock Market LLC that its common stock will be delisted. The decision came after the Nasdaq Hearings Panel concluded that the company did not meet the continued listing requirements. Trading of Orgenesis' stock on Nasdaq will cease at the opening of the market on October 21, 2024.
The company, which operates under the name 03 Life Sciences and is incorporated in Nevada, failed to comply with the minimum bid price requirement and the minimum stockholders’ equity requirement, among other standards. Despite a reverse stock split executed on September 24, 2024, intended to regain compliance with the bid price rule, Orgenesis was unable to meet the necessary criteria.
Following the suspension of trading on Nasdaq, Orgenesis' common stock is expected to start trading on the OTC Markets under the same ticker symbol "ORGS" from October 21, 2024. The company has also applied for quotation on the OTCQX, a higher tier of the OTC Markets known for including companies that meet more stringent financial standards.
Orgenesis has committed to maintaining regulatory compliance and will continue to submit periodic reports and filings with the U.S. Securities and Exchange Commission as required. The transition to the OTC Markets is a significant shift for the company's stock market presence, but Orgenesis aims to ensure continued access for its investors.
In other recent news, Orgenesis Inc . has made significant strides in its operations. The global biotech company reported encouraging results from a study of its CD19 CAR-T therapy, ORG-101, for Acute Lymphoblastic Leukemia treatment, showing high response rates in both adults and children. The company has also initiated a 1-for-10 reverse stock split to meet Nasdaq's minimum bid price requirement for continued listing, reducing its issued and outstanding shares from approximately 47.7 million to 4.77 million.
Orgenesis secured an additional $750,000 in funding from investor Jacob Safier, raising the total loan amount to $1 million. This funding arrangement is part of the company's efforts to secure necessary capital for its operations. Additionally, Orgenesis has established a joint venture with Harley Street Healthcare Group (HSHG) to develop and commercialize wellness and longevity therapies worldwide. HSHG has committed to invest up to $10 million over the next three years.
The company has also expanded its equity incentive plan by 9 million shares and elected five new directors to its board. Orgenesis recently entered into a strategic collaboration with Germfree, aiming to make cell and gene therapy treatments more affordable and accessible. These recent developments reflect the company's commitment to fostering innovation and securing necessary capital for its operations.
InvestingPro Insights
The recent delisting of Orgenesis Inc. from Nasdaq reflects the company's financial challenges, which are further illuminated by InvestingPro data. As of the latest available data, Orgenesis has a market capitalization of $15.36 million, indicating its small-cap status. The company's revenue for the last twelve months as of Q2 2024 stands at $0.66 million, with a staggering revenue decline of 96.97% over the same period.
InvestingPro Tips highlight that Orgenesis "operates with a significant debt burden" and is "quickly burning through cash," which aligns with the company's inability to meet Nasdaq's continued listing requirements. The tip that the "stock has taken a big hit over the last week" is evident in the 11.26% price decline over the past week, while the 38.54% drop over the last month underscores the "stock has fared poorly over the last month" tip.
These insights provide context to Orgenesis' delisting and its move to OTC Markets. Investors considering following the stock to its new trading venue should be aware of these financial indicators. For a more comprehensive analysis, InvestingPro offers 11 additional tips that could provide further clarity on Orgenesis' financial position and future prospects.
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