Proceeds to support strengthening position
within domestic and global cannabis markets
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
MONCTON, NB, Jan. 31, 2018 /CNW/ - Organigram Holdings Inc.
(TSX VENTURE:OGI) (OTCQB:OGRMF) (the "Company" or
"Organigram"), a leading licensed producer of medical
marijuana based in Moncton, New
Brunswick, is pleased to announce that it has closed its
previously announced short form prospectus offering of convertible
unsecured debentures of the Company (the "Convertible
Debentures"), on a bought deal basis, including the full
exercise of the over-allotment option. As such, a total of 115,000
Convertible Debentures were sold at a price of $1,000 per Convertible Debenture, for aggregate
gross proceeds of $115,000,000 (the
"Offering"). The Offering was completed by a syndicate of
underwriters led by Eight Capital, and including Canaccord Genuity
Corp., GMP Securities L.P. and Mackie Research Capital
Corporation.
Each Convertible Debenture has a maturity date of January 31, 2020 (the "Maturity Date") and
will bear interest from the date of closing at 6.00% per annum,
payable semi-annually on June 30 and
December 31 of each year commencing
on June 30, 2018. Each
Convertible Debenture is convertible, at the option of the holder,
into common shares of the Company ("Common Shares") at any
time prior to the close of business on the earlier of: (i) the
business day immediately preceding the Maturity Date, and (ii) if
subject to redemption in the event of a change of control,
the business day immediately preceding the payment date, at a
conversion price of $5.42 per Common
Share (the "Conversion Price"), subject to adjustment in
certain events and to forced conversion by the Company in
accordance with the indenture governing the Convertible Debentures.
The Company may force conversion of the aggregate principal amount
of the then outstanding Convertible Debentures at the Conversion
Price on not less than 30 days' notice should the daily volume
weighted average trading price of the Common Shares be greater than
$7.05 for any 10 consecutive trading
days.
The Company has earmarked approximately 70% of the net proceeds
of the Offering for strategic domestic expansion, strategic
international opportunities and to develop a hemp market presence,
with the remaining 30% for working capital and general corporate
matters.
The Convertible Debentures were offered and sold by way of a
short form prospectus filed in each of the provinces of
Canada, excluding Quebec.
Listing and Trading on the TSX Venture Exchange
The TSX Venture Exchange (the "Exchange") has accepted
the listing of the Convertible Debentures and they commence trading
on the Exchange under the stock symbol OGI.DB on Wednesday, January 31, 2018.
The Convertible Debentures will be quoted and traded on an
accrued interest basis, meaning that all bids, offers and trades of
the Convertible Debentures will reflect only the capital portion of
the Convertible Debentures and will not reflect accrued
interest. Accrued interest must be reflected in the seller's
and buyer's settlement amount, and must be reflected on the
confirmation with clients. The minimum trading unit of Convertible
Debentures is $1,000 and a board lot
of Convertible Debentures is $1,000.
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.
Forward-looking statements
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.
Neither 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 does not constitute an offer to sell or a
solicitation of an offer to buy any of the securities in
the United States. The securities
have not been and will not be registered under the United States
Securities Act of 1933, as amended, or any state securities laws
and may not be offered or sold within the
United States absent such registration or an applicable
exemption from such registration requirements.
For more information, visit www.organigram.ca
SOURCE OrganiGram