Company also Announces $5.3 Million in Exercised Warrants to be
Allocated to Strategic Expansion Plans
MONCTON, NB, Dec. 18, 2017 /CNW/ - Organigram Holdings
Inc. (TSX VENTURE:OGI)(OTCQX:OGRMF) (the "Company" or
"Organigram"), a leading producer of medical marijuana, is pleased
to announce that it has entered into a Letter of Intent ("LOI")
with Farm Credit Canada ("FCC") for a loan in the amount of
$10 million. The consummation of the
loan is subject to customary closing conditions, including any
required regulatory consent.
Organigram's CEO, Greg Engel was
adamant about the support the Company has seen from FCC, noting
this is the third loan received by the Company in the past three
years. "We have had a long and supportive relationship with FCC and
are grateful for their ongoing support. This loan represents
another step to enable the Company to proceed with its previously
announced expansion plan and in conjunction with our recent
$57 million bought deal financing,
capitalizes Organigram for future growth. This increase in
debt financing moves the Company to a more optimized capital
structure with lower cost of capital."
Additionally, the Company announces proceeds in the current
fiscal year to date (which began on September 1, 2017) of $5,345,124 from the exercise of 4,111,634
warrants.
Securing these funds represents another milestone, permitting
the Company to accelerate its expansion plans at its Moncton campus towards 65,000 kg per year of
indoor grown product when fully built out.
For more information, visit www.organigram.ca
About Organigram Holdings Inc.
Organigram Holdings Inc. is a TSX Venture Exchange listed
company whose wholly owned subsidiary, Organigram Inc., is a
licensed producer of medical marijuana in Canada. Organigram is focused on producing the
highest quality, condition specific medical marijuana for patients
in Canada. Organigram's facility
is located in Moncton, New
Brunswick and the Company is regulated by the Access to
Cannabis for Medical Purposes Regulations ("ACMPR").
Organigram has been ranked in the top ten Clean Technology
& Life Sciences Sector on the TSX Venture Exchange 50.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
This news release contains forward-looking information which
involves known and unknown risks, uncertainties and other factors
that may cause actual events to differ materially from current
expectations. Important factors - including the availability of
funds, consummation of definitive documentation, the results of
financing efforts, crop yields - that could cause actual results to
differ materially from the Company's expectations are disclosed in
the Company's documents filed from time to time on SEDAR (see
www.sedar.com). Readers are cautioned not to place undue reliance
on these forward-looking statements, which speak only as of the
date of this press release. The Company disclaims any intention or
obligation, except to the extent required by law, to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
SOURCE OrganiGram