Floorless convertible for ORG?
"Thursday March 26, 4:13 pm Eastern Time
Company Press Release
Organogenesis Inc. Announces $20 Million Equity Funding
CANTON, Mass.--(BW HealthWire)--March 26, 1998--Organogenesis Inc. (AMEX:ORG - news) today announced completion of a $20 million financing of Convertible Preferred Stock with two institutional investors. The preferred shares pay no dividends and are convertible into common stock on a scheduled basis over the next two years based on market price at time of conversion (up to $36 per share). In addition, the investors received 160,000 three-year warrants to purchase Common Stock at $39 per share. Reedland Capital Partners, a division of the Financial West Group, acted as placement agent in the offering.>>
The stock had made a huge run-up just prior to the announcement. It is a very ZONAesque "biotech" with a useless "revolutionary" product promoted mostly through ignorant investors. Novartis, which has worldwide rights on ORG's wound dressing foreskin product. has been trying to sell it in Canada for 2 quarters now. It looks like they sold nothing. All they say about the sales is that Apligraf was warmly received and physicians are now being trained. $850,000,000 market cap...Hmm?
Fundamentally, ORG is an excellent short, but unfortunately, as with most really bad companies, a lot of investors already feel the same way so this short may require a long wait and deep pockets. Who would think that ZONA can trade above $0/share or YHOO above $20? BTW, this is the third 25% split for ORG in 1 year.
T. |
