Orgenesis Inc (ORGS) has released an update to notify the public and investors about an entry into a material definitive agreement.
On January 29, 2024, Orgenesis Inc. acquired all equity interests in Octomera LLC from MM OS Holdings, L.P., an affiliate of Metalmark Capital. The acquisition agreement included royalty payments of 5% of Octomera’s net revenues to the Seller for certain periods, with the option for Orgenesis to buy out future royalties for $40 million. Additionally, a milestone payment clause was included, where the Seller would receive 5% of net proceeds from any sale of Octomera or change of control, subject to a potential $40 million buyout option by Orgenesis. The agreement also involved indemnifications, legal expense payments capped at $300,000, and the termination of advisory services and outstanding indebtedness arrangements between Octomera and Seller’s affiliates.
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For a comprehensive understanding of the announcement, you can read the full document here.
