Organicell Regenerative Medicine, Inc. (OCEL) recently reached a settlement with Mr. Pepock and Ms. Yourke, resolving a legal dispute and leading to the repurchase of 24,800,001 shares of common stock for $500,000. The settlement marks the end of a contentious legal battle, as the repurchased shares were transferred back to the company and redeposited into the treasury of authorized and unissued shares, and Mr. Pepock and Ms. Yourke were released from their non-compete restrictions. The growth of the company seems to be promising with recent successes achieved in advisory and placement agent agreements.
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Organicell’s Business and Product Profile
Organicell is a clinical-stage biopharmaceutical company that primarily focuses on developing innovative biological therapeutics for the treatment of degenerative diseases and regenerative medicine using proprietary products derived from perinatal sources. The company’s leading product, Zofin™, is an acellular biologic therapeutic derived from perinatal sources, containing over 300 growth factors, cytokines, chemokines, and 102 unique microRNAs.
The company has obtained multiple Investigational New Drug (IND) and emergency IND (eIND) approvals from the FDA, including approvals from the required Institutional Review Boards (IRBs) to commence clinical trials and treatments involving Zofin™. Organicell is currently pursuing efforts to complete its approved clinical studies, as well as seeking approval for additional studies catering to specific indications that the use of its products will provide better health-related benefits for patients than currently available alternatives.
However, the company’s progress hinges on securing sufficient working capital to fund the substantial costs of conducting clinical trials, which is currently limited. Moreover, obtaining approval from the FDA remains a crucial challenge for the company to thrive in this competitive market.
Recent Advisory and Placement Agreements
In May 2023, Organicell entered into a six-month advisory agreement (Advisory Services Agreement) and a six-month private placement agent agreement (Placement Agreement) with an investment banking firm (I-Bank) to raise up to $10 million in financing through private placements of the company’s debt and/or equity securities (Offering). These agreements aim to provide Organicell with essential financial advisory services and increase the company’s chances of raising the required financing for the clinical trials.
As part of the Advisory Services Agreement, Organicell agreed to pay I-Bank a monthly cash fee of $10,000 and grant them 5-year “cashless” warrants to purchase 25,000,000 shares of common stock at an exercise price of $0.02 per share. Meanwhile, the Placement Agreement stipulates that Organicell will pay I-Bank legal fees of up to $25,000, a non-refundable retainer of $12,500, and several other fees and warrants.
Organicell’s continuous efforts to expand its sales, develop new product offerings, and pursue clinical trials and FDA approvals are pivotal for the company’s growth and success in the biopharmaceutical industry. With the recent resolution of the legal dispute with Mr. Pepock and Ms. Yourke, the company can now focus solely on advancing its business plans and securing much-needed financing for its crucial clinical trials.
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