Speculating on Kpay funding through Orgenesis backers.
Consolidation of CDMO Entities and Strategic Funding As described in Note 10 to the financial statements as of November 30, 2018, in June 2018, the Company, Masthercell Global, and Great Point Partners, LLC ("Great Point"), and certain of Great Point's affiliates, entered into a series of definitive strategic agreements intended to finance, strengthen and expand Orgenesis' CDMO business. An initial cash payment of $11.8 million of the consideration was remitted in June 2018 by GPP-II ($1.5 million of the initial capital contributed to Masthercell Global was used to reimburse the investors for their fees and expenses incurred in conjunction with this transaction (net payment of $10.3 million)), with a follow up payment of $6.6 million to be made in each of years 2018 and 2019, or for an aggregate of $13.2 million, if certain conditions are met. Masthercell Global achieved the specified targets in 2018 and as such, Masthercell Global received the first payment of $6.6 million on January 16, 2019.
It would be a guess, but if Kpay is getting funding from anyone related to Orgenesis, I'd bet it's Great Point Partners. They set up release of funding when certain revenue thresholds were met. They just met another one about 10 days ago, so they opened up the Greece JV. They took a shot on Orgenesis, a company with accumulated loses of over $83 million. But Orgenesis's third quarter revenue was up 46% to $9.1 million. Maybe they look at the upcoming JV with Orgenesis, and the P2P permit as enough to take a shot on Kpay.
