Investment Update Details

NATCO Pharma Limited has decided to increase its investment in eGenesis, Inc. from the previously disclosed amount of US$14.00 million to US$16.70 million through its wholly owned subsidiaries. This represents an increase of US$2.70 million over the previously announced investment.

Subsidiary Participation Changes

There has been a change in the subsidiaries participating in the investment:

  • NATCO Pharma (Canada) Inc. will invest US$13.70 million
  • NATCO Pharma USA LLC will invest US$3.00 million

Investment Instrument and Terms

The investment is being made through convertible promissory notes:

  • NATCO Pharma (Canada) Inc. is purchasing a Convertible Promissory Note with a principal amount of US$13.70 million with an interest rate of 8% compounded annually
  • NATCO Pharma USA LLC is purchasing a Convertible Promissory Note with a principal amount of US$3.00 million with an interest rate of 8% compounded annually
  • At the time of completion of this acquisition, no additional shares are being acquired

Historical Investment Context

Earlier in 2024, NATCO had invested US$8.00 million in eGenesis through NATCO Pharma (Canada) Inc. Upon completion of the proposed investment, NATCO's total investment in eGenesis will increase to US$24.70 million.

Target Company Background

eGenesis, Inc. is a clinical stage biotechnology company:

  • Date of incorporation: October 1, 2015
  • Industry: Biotechnology
  • Business: Using multiplex gene editing and genome engineering platform to research and develop porcine solid organ donors for use in human transplantation
  • Focus: Addressing critical unmet medical needs for patients with serious diseases causing organ failure
  • Financial status: Pre-revenue clinical stage company
  • Country of operation: United States of America

Clinical Progress

eGenesis is pioneering a genome engineering-based approach in the development of safe and effective transplantable organs. The eGenesis Genome Engineering and Production (EGEN™) Platform addresses cross-species molecular incompatibilities and viral risk via genetic engineering.

In March 2024, eGenesis announced the world's first porcine kidney transplant in a living patient, authorized by the U.S. Food & Drug Administration (FDA) under the Expanded Access pathway. This was followed by porcine kidney transplants in two additional patients, with exceptionally positive outcomes.

Transaction Details

  • Not a related party transaction
  • No promoter/promoter group/group companies have any interest in eGenesis
  • No governmental or regulatory approvals required
  • Indicative time period for completion: October 31, 2026
  • Cash consideration for subscribing to convertible promissory notes