ONVO Stock Continues to Rise

Shares of ONVO (Organovo Holdings, Inc.) are up to $1.85 in today’s trading session. The Company has traded as low as $1.53 earlier this month. It still has a long way to go to get back to its earlier position of $9.65 back on June 18. The main reason for the drop over the last month was a financing that the Company did earlier this year, which you read about below.

About the Company:

Organovo is a three-dimensional biology company focused on delivering breakthrough bioprinting technology and creating tissue on demand for research and medical applications. The company’s NovoGen three-dimensional bioprinting technology is a platform that works across all tissue and cell types. Organovo’s NovoGen MMX Bioprinter was selected as one of the “Best Inventions of 2010″ by TIME Magazine. Organovo is helping pharmaceutical partners develop human biological disease models in three dimensions that enable therapeutic drug discovery and development. Organovo’s bioprinting technology can also be developed to create surgical tissues as direct therapy.

ONVO Recent News Announcements

Earlier this month the Company announced a facility relocation and expansion. Organovo has moved its headquarters to a new 15,539 sq ft facility in San Diego, California. The facility consists of mixed lab and office space and features a clean room space nearly four times larger than Organovo’s previous facility. Clean room facilities are required for protection of the functional human tissues created by Organovo’s innovative 3D bioprinting process.

The space is located in the Portola development in the Sorrento Mesa area of San Diego. Alexandria Real Estate is the property owner and manager through its regional LLC. Cushman and Wakefield, LLC brokered the transaction, with Brent Jacobs and Greg Bisconti of the life sciences group representing Organovo. Organovo’s previous headquarters facility consisted of 4,432 sq ft of mixed office and lab space. In the expanded facility, Organovo will continue its focus on developing bioprinting to create a broad array of functional 3D tissues that can recapitulate in vivo biology for human disease research, drug discovery and development, toxicology testing and, eventually, as therapies.

Recent Financial Statement Highlights

Cash on Hand: $10,352,507

Shares Outstanding: 31,591,663

Revenue: $120,000 (3 Months Ended March 31, 2012)

R&D Revenue:

In December 2010, the Company entered into a 12 month research contract agreement with a third party, whereby the Company was engaged to perform research and development services on a fixed-fee basis for approximately $600,000. Based on the proportional performance criteria, the Company recognized approximately $0 and $74,000 in revenue related to the contract during three months ended March 31, 2012 and 2011, respectively. Total revenue recognized on the contract from inception through March 31, 2012 was approximately $450,000.

In October 2011, the Company entered into a research contract agreement with a third party, whereby the Company will perform research and development services on a fixed-fee basis for $1,365,000. The agreement included an initial payment to the Company of approximately $239,000, with remaining payments expected to occur over a 21-month period. During the period ended March 31, 2012, the Company recorded approximately $120,000 in revenue related to the research contract in recognition of the proportional performance achieved by the Company during the first quarter of 2012. Total revenue recognized on the contract from inception through March 31, 2012 was approximately $359,000.

Private Placement:

During 2012, the Company completed the initial closing of the Private Placement of up to 8,000,000 units of its securities, at a price of $1.00 per unit, with the ability to increase the offering to an aggregate of up to 16,000,000 units. Each unit consisted of one share of Common Stock and a warrant to purchase one share of Common Stock. The Company completed three closings under the Private Placement during the three months ended March 31, 2012, and raised total gross proceeds of $13,722,600 and total net proceeds of $11,593,066. The Company issued 13,722,600 shares of its Common Stock and warrants to purchase 15,247,987 shares of its Common Stock (including warrants to purchase 1,525,387 shares to former holders of the bridge notes) exercisable at $1.00 to investors in the Offering. The placement agent and its selected dealers were paid total cash commissions of $1,372,260 and the Placement Agent was paid an expense allowance of $411,678 and was issued Placement Agent warrants to purchase 6,099,195 shares of the Company’s Common Stock at an exercise price of $1.00 per share.

Source: ONVO 10Q Filing 5-15-12


Stock Chart and Trading Highlights

30 Day Percent Change:  -70.80

30 Day Moving Average: 4.77

30 Day Average Volume: 393,359


ONVO Stock Chart

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