Organogenesis Holdings Inc. Announces Pricing of Public Offering of Class A Common Stock

Rhea-AI Summary

Organogenesis Holdings (Nasdaq: ORGO) has priced an underwritten public offering of 17,500,000 shares of its Class A common stock at $3.25 per share, aiming for gross proceeds of approximately $56.9 million. The offering is set to close by November 17, 2020, pending customary conditions. The company plans to use the net proceeds for working capital, facility expansion, salesforce growth, clinical studies, and securing regulatory approvals. Underwriters have a 30-day option to purchase an additional 2,625,000 shares.

Positive

• Gross proceeds expected to be approximately $56.9 million.
• Net proceeds intended for facility expansion and clinical studies.

Negative

• Potential dilution of shares due to public offering.
• Market risks associated with the offering and its timing.

CANTON, Mass., Nov. 13, 2020 (GLOBE NEWSWIRE) -- Organogenesis Holdings Inc. (Nasdaq: ORGO), a leading regenerative medicine company focused on the development, manufacture, and commercialization of product solutions for the Advanced Wound Care and Surgical & Sports Medicine markets, today announced the pricing of an underwritten public offering of 17,500,000 shares of its Class A common stock, offered at a price to the public of $3.25 per share. The gross proceeds to Organogenesis Holdings from this offering are expected to be approximately $56.9 million, before deducting the underwriting discounts and commissions and other offering expenses payable by Organogenesis Holdings. Organogenesis Holdings has granted the underwriters a 30-day option to purchase up to an aggregate of 2,625,000 additional shares of its Class A common stock. The offering is expected to close on or about November 17, 2020, subject to customary closing conditions.

Morgan Stanley & Co. LLC and SVB Leerink LLC are acting as joint book-running managers of the offering and BTIG, LLC and Oppenheimer & Co. Inc. are acting as co-managers for the offering.

Organogenesis Holdings intends to use the net proceeds from this offering, together with other available funds, for working capital and general corporate purposes, including, but not limited to, facility expansion and manufacturing enhancements, salesforce expansion and to conduct clinical studies of, obtain regulatory approvals and additional commercial insurance coverage for its products.  The Company will retain broad discretion to allocate the proceeds.

A registration statement on Form S-1 relating to the shares of Class A common stock being offered has been filed with, and declared effective by, the Securities and Exchange Commission (the “SEC”). The offering is being made only by means of a prospectus included in the registration statement declared effective by the SEC, copies of which may be obtained from Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, New York 10014 or by email at prospectus@morganstanley.com, or SVB Leerink, Attention: Syndicate Department, One Federal Street, 37th Floor, Boston, MA 02110, by telephone at 1-800-808-7525, ext. 6132, or by email at syndicate@svbleerink.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding Organogenesis Holdings’ anticipated closing date for the sale of Class A common stock and the use of proceeds from that offering, that involve a number of risks and uncertainties. Statements that are not historical facts are based on Organogenesis Holdings’ current expectations, beliefs and assumptions regarding the market for its Class A common stock. There can be no assurance regarding the completion, timing or size of the proposed offering. Important factors that could cause actual outcomes to differ materially from those indicated by these forward-looking statements include risks and uncertainties related to market conditions, the satisfaction of customary closing conditions related to the proposed public offering and others described in Organogenesis Holdings’ registration statement on Form S-1. Organogenesis Holdings cautions investors not to place undue reliance on the forward-looking statements contained in this release. These statements speak only as of the date of this release, and Organogenesis Holdings undertakes no obligations to update or revise these statements, except as may be required by law.

About Organogenesis Holdings Inc.
Organogenesis Holdings Inc. is a leading regenerative medicine company offering a portfolio of bioactive and acellular biomaterials products in advanced wound care and surgical biologics, including orthopedics and spine. Organogenesis’s comprehensive portfolio is designed to treat a variety of patients with repair and regenerative needs.

FAQ

What is the stock offering price for ORGO?

The stock offering price for Organogenesis Holdings (ORGO) is set at $3.25 per share.

When is the closing date for the ORGO stock offering?

The closing date for the Organogenesis Holdings stock offering is expected on or about November 17, 2020.

What are the intended uses of proceeds from the ORGO offering?

Organogenesis Holdings plans to use the proceeds for working capital, facility expansion, salesforce growth, and clinical studies.

How many shares are being offered in the ORGO public offering?

Organogenesis Holdings is offering 17,500,000 shares of its Class A common stock.

What is the total amount expected to be raised from the ORGO offering?

The total amount expected to be raised from the offering is approximately $56.9 million.