Organicell Regenerative Medicine, Inc. (OCEL) recently raised $100,000 through the sale of more than 4.4 million shares at a price of $0.02244 each. The funds raised will be used for working capital and general corporate purposes. In parallel, the company has undergone significant executive changes, settled litigation by repurchasing 24.8 million shares, and reduced the annual salaries of key executives.
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Litigation Settlement and Share Repurchase
In October 2022, the Company settled a lawsuit by repurchasing 24.8 million shares of common stock for $500,000. These shares were transferred back to Organicell’s treasury and redeposited as authorized and unissued shares in February 2023.
Regarding executive changes, Dr. Maria Ines Mitrani was terminated as Organicell’s Chief Scientific Officer in April 2023. Albert Mitrani, the company’s Executive Vice President of Sales, was also terminated in May 2023. The company appointed Harry Leider, M.D., M.B.A., as Chief Executive Officer and Howard J. Golub, M.D., as Executive Vice President and Chief Science Officer in June 2023. Ian T. Bothwell, who served as Interim CEO since November 2022, will continue in his role as Chief Financial Officer.
Salary Reductions and Compensation Waivers
Amid these changes, Albert Mitrani, Dr. Maria Ines Mitrani, and Ian Bothwell agreed to reduce their annual salaries. While Dr. Mitrani and Albert Mitrani will receive $150,000 per year effective December 15, 2022, Mr. Bothwell’s reduction took effect from November 30, 2022. The reductions will remain in effect until the net revenues from operations are enough to cover the salaries of the executives without these reductions.
Furthermore, Albert Mitrani and Dr. Maria Ines Mitrani waived all accrued but unpaid compensation outstanding as of July 31, 2022. Ian Bothwell also waived all unpaid and accrued compensation outstanding as of that date, in exchange for ten-year warrants to purchase 30,000,000 Organicell shares at an exercise price of $0.02 per share.
Regarding ongoing litigation, Organicell has faced legal matters concerning former Sales Executives Daniel Pepock and Tracy Yourke. Pepock filed a complaint against the company in Pennsylvania, while Yourke initiated her suit in Michigan. Both cases have since been removed to the respective United States District Courts.
Continued Investments in Clinical Research
In addition to the executive and legal fronts, Organicell continues to invest in clinical research. The company has entered into agreements with a new Contract Research Organization (CRO) to provide clinical research and related services for two of its approved clinical research trials. As of April 30, 2023, Organicell has been billed approximately $1.23 million in connection with the CRO agreements and related costs.
Despite the challenges faced by Organicell Regenerative Medicine, the company’s recent funding and its ongoing clinical research investments demonstrate a determination to continue pushing forward. As the company navigates the litigation landscape and executive changes, stakeholders will likely keep a close watch on developments to assess the potential impact on the company’s financials, operations, and long-term success.
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