ORGANOVO HOLDINGS, INC. (NASDAQ:ONVO) Files An 8-K Results of Operations and Financial Condition

ORGANOVO HOLDINGS, INC. (NASDAQ:ONVO) Files An 8-K Results of Operations and Financial Condition
Item 2.02

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Results of Operations and Financial Condition.

On October 4, 2017, Organovo Holdings, Inc. (the “Company”) issued a press release to announce preliminary unaudited total revenue results for the second quarter of fiscal 2018 and to disclose the restructuring plan discussed in more detail in Item 2.02 below, including the expected costs, timing and operational benefits of restructuring plan and the expected financial impact of the restructuring plan on the Company’s future operating costs and financial results. A copy of this press release is furnished as Exhibit 99.1 hereto.

Item 2.02

Costs Associated with Exit or Disposal Activities.

On September 29, 2017, the Board of Directors (the “Board”) of Organovo, Holdings, Inc. (the “Company”) approved a plan to restructure the Company’s business to better focus and align resources, improve operational efficiency, consolidate overlapping positions, and streamline the Company’s management structure. Under this plan, which is expected to be completed in November 2017, the Company will reduce its overall workforce by 15 employees (or 13%). Affected employees have received notification and are eligible to receive severance payments based on their level within the organization and years of service, contingent upon an affected employee’s execution (and non-revocation) of a separation agreement, which includes a general release of claims against the Company. The Company expects the reduction in workforce will decrease operating costs by $1.3 million in fiscal 2018 and $2.7 million in fiscal 2019.

In connection with the reorganization plan, the Company estimates that it will incur aggregate charges of approximately $0.9 million related to one-time termination benefits, including severance, and other employee related costs. These costs are expected to be primarily incurred during the third quarter of fiscal year 2018 ending December 31, 2017.

Item 2.02

Regulation FD Disclosure.

The information disclosed under Item 2.02 is also intended to be disclosed under this Item 2.02 and is incorporated herein by reference.

The information furnished in Items 2.02 and 7.01 to this Form 8-K, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section18 of the Exchange Act or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any other filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except as expressly set forth by specific reference in such a filing.

Item 2.02

Financial Statements and Exhibits.

(d) Exhibits. The following material is filed as an exhibit to this Current Report on Form 8-K:

Exhibit

Number

99.1

Press Release, issued October 4, 2017.


ORGANOVO HOLDINGS, INC. Exhibit
EX-99.1 2 onvo-ex991_6.htm EX-99.1 onvo-ex991_6.htm EXHIBIT 99.1       Investor & Press Contact:   Steve Kunszabo Organovo Holdings,…
To view the full exhibit click here

About ORGANOVO HOLDINGS, INC. (NASDAQ:ONVO)

Organovo Holdings, Inc. is an early commercial-stage company focused on developing and commercializing functional human tissues. The Company focuses on the generation of three-dimensional (3D) human tissues, by utilizing its platform technology to create human tissue constructs in 3D. It is focused on development of products, including 3D human tissues used for the preclinical assessment of drug effects, including applications in predictive toxicology, absorption, distribution, metabolism, excretion (ADME), and drug metabolism and pharmacokinetics (DMPK); customized human tissues as living, dynamic models of human biology or disease, for use in drug discovery and development, and three-dimensional human tissues for clinical applications, such as blood vessels for bypass grafting, nerve grafts for nerve damage repair and functional tissue patches for the repair or replacement of damaged tissues and organs.

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