Orgenesis Inc. announced that its subsidiary, Masthercell Global Inc., is expanding into the United States and has executed a lease agreement to build a new 30,000 sq. ft manufacturing facility in Houston, Texas. The new facility will allow Masthercell Global to expand its world presence and current capacities. Masthercell Global is a leading cell and gene therapy Contract Development and Manufacturing Organization (“CDMO”) that will now have operations and manufacturing facilities across three continents (North America, Europe and Asia).
The Company also announced that Masthercell Global has received the first milestone payment of $6.6 million per its previously announced strategic partnership with Great Point Partners, LLC (“GPP”) in accordance with the Stock Purchase Agreement announced on June 28, 2018. Under the terms of the agreement, GPP provided an upfront payment of $11.8 million into Masthercell Global, out of a total $25 million planned investment, with the remaining investment being provided by GPP in two equal installments subject to Masthercell Global achieving certain milestones relating to net revenue and EBITDA. This first milestone payment was triggered upon Masthercell Global achieving certain financial based milestones and will not result in any additional share issuance to GPP in either Masthercell Global or Orgenesis. The additional funding provided by GPP will be used to launch the new U.S. facility, expand the facilities in Europe, Israel, and Korea, as well as provide Masthercell Global with growth capital to further enhance services for its customer base.
“We are thrilled with the performance of Masthercell Global since the GPP investment, and this latest tranche of funding will help drive additional growth,” stated Vered Caplan, CEO and Chairperson of Orgenesis. “The additional capacity provided by this expansion should allow us to expand our presence in North America and enhance the services for our customers in order to fully capitalize on the growing global market demand.”
Noah Rhodes, Managing Director at GPP, stated “The new U.S. facility will enable new and existing clients to work with Masthercell Global across the world. Masthercell Global’s international reach will allow for more innovation and efficient processes, while ensuring the same quality standards across the company.”