Attached files
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8-K - FORM 8-K - Orgenesis Inc. | form8k.htm |
Exhibit 99.1
Unaudited Pro Forma Condensed Balance Sheet
(Dollars in Thousands, except for share amounts)
Historical | ||||||||||||||||
As of | As of | |||||||||||||||
September 30, | September 30, | September 30, | ||||||||||||||
2019 | 2019 | 2019 | ||||||||||||||
Orgenesis | Sale of MaSTher Cell Note 2(c) |
Pro Forma Adjustments Notes 2(a)+(b) |
Pro Forma | |||||||||||||
Assets | ||||||||||||||||
CURRENT ASSETS: | ||||||||||||||||
Cash and cash equivalents | $ | 10,054 | $ | (9,951 | ) | $ | 119,535 | $ | 119,638 | |||||||
Restricted Cash | 653 | (189 | ) | 464 | ||||||||||||
Accounts receivable, net | 5,075 | (6,769 | ) | 2,533 | 839 | |||||||||||
Prepaid expenses and other receivables | 914 | (587 | ) | 327 | ||||||||||||
Grants receivable | 2,218 | (1,918 | ) | 300 | ||||||||||||
Inventory | 1,859 | (1,686 | ) | 173 | ||||||||||||
Total current assets | $ | 20,773 | $ | (21,100 | ) | $ | 122,068 | $ | 121,741 | |||||||
NON-CURRENT ASSETS: | ||||||||||||||||
Deposits | 615 | (326 | ) | 289 | ||||||||||||
Loans to related party | 2,093 | 2,093 | ||||||||||||||
Other intercompany receivables | (2,178 | ) | 2,178 | - | ||||||||||||
Property, plant and equipment, net | 17,742 | (15,319 | ) | 2,423 | ||||||||||||
Intangible assets, net | 14,256 | (10,924 | ) | 3,332 | ||||||||||||
Operating lease right-of-use assets | 9,595 | (8,794 | ) | 801 | ||||||||||||
Goodwill | 14,489 | (9,818 | ) | 4,671 | ||||||||||||
Intercompany loan receivable | (2,489 | ) | 2,489 | - | ||||||||||||
Other assets | 36 | 36 | ||||||||||||||
Total non-current assets | 58,826 | (49,848 | ) | 4,667 | 13,645 | |||||||||||
TOTAL ASSETS | $ | 79,599 | $ | (70,948 | ) | $ | 126,735 | $ | 135,386 |
Liabilities and Equity | ||||||||||||
CURRENT LIABILITIES: | ||||||||||||
Accounts payable | $ | 7,693 | $ | (3,226 | ) | $ | - | $ | 4,467 | |||
Accrued expenses and other payables | 1,719 | (397 | ) | 19,700 | 21,022 | |||||||
Employees and related payables | 3,618 | (2,042 | ) | 1,576 |
Advance payments on account of grant | 2,735 | (2,246 | ) | 489 | ||||||||
Short-term loans and current maturities of long term loans | 642 | (359 | ) | 283 | ||||||||
Contract liabilities | 5,708 | (5,536 | ) | 172 | ||||||||
Current maturities of long-term debt and finance leases | 227 | (227 | ) | - | ||||||||
Current maturities of operating leases | 1,624 | (1,253 | ) | 371 | ||||||||
Current maturities of convertible loans | 397 | 397 | ||||||||||
Total current liabilities | $ | 24,363 | $ | (15,286 | ) | $ | 19,700 | $ | 28,777 | |||
LONG-TERM LIABILITIES: | ||||||||||||
Non-current operating leases | 7,435 | (6,931 | ) | 504 | ||||||||
Loans payable | 1,283 | (1,283 | ) | - | ||||||||
Convertible loans | 8,465 | 8,465 | ||||||||||
Retirement benefits obligation | 26 | 26 | ||||||||||
Deferred taxes | 1,964 | (1,795 | ) | 169 | ||||||||
Long-term debt and finance leases | 505 | (505 | ) | - | ||||||||
Other long-term liabilities | 322 | 322 | ||||||||||
Total long-term liabilities | 20,000 | (10,514 | ) | - | 9,486 | |||||||
TOTAL LIABILITIES | $ | 44,363 | $ | (25,800 | ) | $ | 19,700 | $ | 38,263 | |||
COMMITMENTS REDEEMABLE NON-CONTROLLING INTEREST | 24,139 | (24,139 | ) | - | - | |||||||
TOTAL EQUITY | 11,097 | (21,009 | ) | 107,035 | 97,123 | |||||||
TOTAL LIABILITIES AND EQUITY | $ | 79,599 | $ | (70,948 | ) | $ | 126,735 | $ | 135,386 |
Unaudited Pro Forma Statement of Operations
(Dollars in Thousands, except for share amounts)
Historical | |||||||||
Nine Months Ended | Nine Months Ended | ||||||||
September 30, | September 30, | September 30, | |||||||
2019 | 2019 | 2019 | |||||||
Orgenesis | Sale of MaSTherCell Note 2(d) |
Pro Forma | |||||||
REVENUES | $ | 24,179 | $ | (21,397 | ) | $ | 2,782 | ||
COST OF REVENUES | 15,643 | (12,706 | ) | 2,937 | |||||
GROSS PROFIT | 8,536 | (8,691 | ) | (155 | ) | ||||
RESEARCH AND DEVELOPMENT EXPENSES, net | 7,597 | 659 | 8,256 | ||||||
AMORTIZATION OF INTANGIBLE ASSETS | 1,547 | (1,224 | ) | 323 | |||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 17,448 | (9,011 | ) | 8,437 | |||||
OTHER INCOME, net | (104 | ) | 89 | (15 | ) | ||||
OPERATING LOSS | 17,952 | (796 | ) | 17,156 | |||||
FINANCIAL EXPENSES , net | 588 | 6 | 594 | ||||||
LOSS BEFORE INCOME TAXES | 18,540 | (790 | ) | 17,750 | |||||
TAX EXPENSES | 649 | (761 | ) | (112 | ) | ||||
NET LOSS | 19,189 | (1,551 | ) | 17,638 | |||||
NET (INCOME) LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS (INCLUDING REDEEMABLE) | (1,128 | ) | 1,075 | (53 | ) | ||||
NET LOSS ATTRIBUTABLE TO ORGENESIS INC. | 18,061 | (476 | ) | 17,585 | |||||
LOSS PER SHARE: | |||||||||
Basic | $ | 1.35 | $ | 1.27 | |||||
Diluted | $ | 1.35 | $ | 1.27 | |||||
WEIGHTED AVERAGE NUMBER OF SHARES USED IN COMPUTATION OF BASIC AND DILUTED EARNINGS (LOSS) PER SHARE: | |||||||||
Basic | $ | 15,858,666 | $ | 15,858,666 | |||||
Diluted | $ | 15,858,666 | $ | 15,858,666 |
Unaudited Pro Forma Statement of Operations
(Dollars in Thousands, except for share amounts)
Historical | |||||||||
One Month Ended | |||||||||
December 31, | December 31, | December 31, | |||||||
2018 | 2018 | 2018 | |||||||
Orgenesis | Sale of MaSTherCell Note 2(e) |
Pro Forma | |||||||
REVENUES | $ | 1,852 | (1,709 | ) | 143 | ||||
COST OF REVENUES | 1,221 | (1,078 | ) | 143 | |||||
GROSS PROFIT | 631 | (631 | ) | - | |||||
RESEARCH AND DEVELOPMENT EXPENSES, net | 1,431 | 66 | 1,497 | ||||||
AMORTIZATION OF INTANGIBLE ASSETS | 179 | (141 | ) | 38 | |||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 1,984 | ( 999 | ) | 985 | |||||
OPERATING LOSS | 2,963 | (443 | ) | 2,520 | |||||
FINANCIAL EXPENSES , net | 27 | (17 | ) | 10 | |||||
LOSS BEFORE INCOME TAXES | 2,990 | (460 | ) | 2,530 | |||||
TAX (INCOME) EXPENSES | (83 | ) | 124 | 41 | |||||
NET LOSS | 2,907 | (336 | ) | 2,571 | |||||
NET (INCOME) LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS (INCLUDING REDEEMABLE) | (163 | ) | 152 | (11 | ) | ||||
NET LOSS ATTRIBUTABLE TO ORGENESIS INC. | 2,744 | (184 | ) | 2,560 | |||||
LOSS PER SHARE: | |||||||||
Basic | $ | 0.19 | 0.17 | ||||||
Diluted | $ | 0.19 | 0.17 | ||||||
WEIGHTED AVERAGE NUMBER OF SHARES USED IN COMPUTATION OF BASIC AND DILUTED EARNINGS (LOSS) PER SHARE: | |||||||||
Basic | $ | 15,423,040 | 15,423,040 | ||||||
Diluted | $ | 15,423,040 | 15,423,040 |
Unaudited Pro Forma Statement of Operations
(Dollars in Thousands, except for share amounts)
Historical | |||||||||
Year Ended | Year Ended | ||||||||
November 30, | November 30, | November 30, | |||||||
2018 | 2018 | 2018 | |||||||
Orgenesis | Sale of MaSTherCell Note 2(f) |
Pro Forma | |||||||
REVENUES | 18,655 | (17,273 | ) | 1,382 | |||||
COST OF REVENUES | 10,824 | (9,403 | ) | 1,421 | |||||
GROSS PROFIT (LOSS) | 7,831 | (7,870 | ) | (39 | ) | ||||
RESEARCH AND DEVELOPMENT EXPENSES, net | 6,464 | 1,259 | 7,723 | ||||||
AMORTIZATION OF INTANGIBLE ASSETS | 1,913 | (1,725 | ) | 188 | |||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 16,303 | (6,196 | ) | 10,107 | |||||
OTHER INCOME, net | (2,930 | ) | (1,600 | ) | (4,530 | ) | |||
OPERATING LOSS | 13,919 | (392 | ) | 13,527 | |||||
FINANCIAL EXPENSES , net | 3,117 | (185 | ) | 2,932 | |||||
SHARE IN NET LOSS OF ASSOCIATED COMPANIES | 731 | - | 731 | ||||||
LOSS BEFORE INCOME TAXES | 17,767 | (577 | ) | 17,190 | |||||
TAX EXPENSES | 1,337 | (1,185 | ) | 152 | |||||
NET LOSS | 19,104 | (1,762 | ) | 17,342 | |||||
NET (INCOME) LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS (INCLUDING REDEEMABLE) | (813 | ) | 771 | (42 | ) | ||||
NET LOSS ATTRIBUTABLE TO ORGENESIS INC. | 18,291 | (991 | ) | 17,300 | |||||
LOSS PER SHARE: | |||||||||
Basic | 1.43 | 1.30 | |||||||
Diluted | 1.43 | 1.30 | |||||||
WEIGHTED AVERAGE NUMBER OF SHARES USED IN COMPUTATION OF BASIC AND DILUTED EARNINGS (LOSS) PER SHARE: | |||||||||
Basic | 13,374,103 | 13,374,103 | |||||||
Diluted | 13,374,103 | 13,374,103 |
Unaudited Pro Forma Statement of Operations
(Dollars in Thousands, except for share amounts)
Historical | |||||||||
Year Ended | Year Ended | ||||||||
November 30, | November 30, | November 30, | |||||||
2017 | 2017 | 2017 | |||||||
Orgenesis | Sale of MaSTherCell Note 2(g) |
Pro Forma | |||||||
REVENUES | 10,089 | (10,089 | ) | - | |||||
COST OF REVENUES | 6,807 | (6,807 | ) | - | |||||
GROSS PROFIT (LOSS) | 3,282 | (3,282 | ) | - | |||||
RESEARCH AND DEVELOPMENT EXPENSES, net | 2,478 | 757 | 3,235 | ||||||
AMORTIZATION OF INTANGIBLE ASSETS | 1,631 | (1,631 | ) | - | |||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 9,189 | (4,699 | ) | 4,490 | |||||
OPERATING LOSS | 10,016 | (2,291 | ) | 7,725 | |||||
FINANCIAL EXPENSES , net | 2,447 | (238 | ) | 2,209 | |||||
SHARE IN NET LOSS OF ASSOCIATED COMPANIES | 1,214 | - | 1,214 | ||||||
LOSS BEFORE INCOME TAXES | 13,676 | (2,528 | ) | 11,148 | |||||
TAX (INCOME) EXPENSES | (1,310 | ) | 1,310 | - | |||||
NET LOSS | 12,367 | (1,219 | ) | 11,148 | |||||
NET (INCOME) LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS (INCLUDING REDEEMABLE) | - | - | - | ||||||
NET LOSS ATTRIBUTABLE TO ORGENESIS INC. | 12,367 | (1,219 | ) | 11,148 | |||||
LOSS PER SHARE: | |||||||||
Basic | 1.28 | 1.15 | |||||||
Diluted | 1.31 | 1.19 | |||||||
WEIGHTED AVERAGE NUMBER OF SHARES USED IN COMPUTATION OF BASIC AND DILUTED EARNINGS (LOSS) PER SHARE: | |||||||||
Basic | 9,679,964 | 9,679,964 | |||||||
Diluted | 9,714,252 | 9,714,252 |
1. Basis of Presentation
The historical financial information has been adjusted to give pro forma effect to events that are (i) directly attributable to the divestiture, (ii) factually supportable and (iii) expected to have a continuing impact on the combined results. The pro forma adjustments are preliminary and based on estimates and have been prepared to illustrate the estimated effect of the divestiture. The pro forma financial information presented is not intended to reflect or be indicative of the Company's consolidated results of operations or financial position had the divestiture occurred as of the dates presented and should not be taken as a representation or projection of the Company's future consolidated results of operations or financial condition. The pro forma adjustments described below were based on management's assumptions and estimates, including assumptions relating to consideration received.
The Company's historical results are derived from its unaudited balance sheet as of September 30, 2019, unaudited statements of operations for the nine months ended September 30, 2019, unaudited statements of operations for the transition month ended December 31, 2018, and audited statements of operations for the years ended November 30, 2018 and November 30, 2017.
2. Notes to Unaudited Pro Forma Adjustments
(a) |
Represents the anticipated cash proceeds from closing the Transaction, net of repayment of Orgenesis loans and intercompany balances to MaSTherCell The net adjustment for cash is as follows (dollars in millions): |
Total | |||
Aggregate nominal purchase price from the sale | $ | 315.0 | |
Less: GPP liquidation preference and equity stake in Masthercell, SFPI - FPIM's interest in MaSTherCell S.A., distributions to Masthercell option holders, and transaction costs | (188.3 | ) | |
Estimated cash proceeds from the Transaction to the Company | 126.7 | ||
Less: Payment of intercompany loans and payables | (7.2 | ) | |
Net cash adjustment (including $1.4M to be released from Escrow) | $ | 119.5 |
(b) |
Represents the estimated tax effect of the Transaction assuming a combined statutory tax rate of 29% after utilizing accumulated net operating losses of approximately $29 million |
(c) |
Represents the historical balances of Masthercell at September 30, 2019 |
(d) |
Represents the historical results of operations of Masthercell for the 9 months ended September 30, 2019 |
(e) |
Represents the historical results of operations of Masthercell for the transition month ended December 31, 2018 |
(f) |
Represents the historical results of operations of Masthercell for the year ended November 30, 2018 |
(g) |
Represents the historical results of operations of Masthercell for the year ended November 30, 2017 |