Presence in Germany extends company's commitment to
international expansion.
MONCTON, NB, Oct. 17, 2018 /CNW/ - Organigram Holdings Inc.
(TSX VENTURE: OGI) (OTCQX: OGRMF), a leading licensed producer of
medical marijuana, is pleased to announce that it has, through its
wholly-owned subsidiary 10870277 Canada Inc. (the "Purchaser" or
"OGI"), executed an investment agreement dated as of October 10, 2018 with alpha-cannabis® Pharma GmbH
("Alpha-Cannabis Germany" or "ACG") pursuant to which the Purchaser
will acquire 8,333 common shares of ACG, representing a 25% stake
in the capital of ACG, for aggregate proceeds of €1,625,000.
The closing is subject to certain formalities under German law
largely of an administrative nature.
![OrganiGram (CNW Group/OrganiGram) OrganiGram (CNW Group/OrganiGram)](https://mma.prnewswire.com/media/770638/OrganiGram_Organigram_Announces_Definitive_Agreement_to_Acquire.jpg)
As part of the investment and effective upon the closing of the
investment, OGI's wholly-owned subsidiary, Organigram Inc. will
enter into two supply agreements with ACG: one for the supply of
cannabidiol isolate from ACG to Organigram Inc., and the other for
the supply of dried cannabis flower from Organigram Inc. to ACG. In
addition, ACG and Organigram Inc. will enter into an agreement
pursuant to which the companies will jointly evaluate and bid on
certain licenses to supply medical cannabis to the German
market.
In addition, upon ACG achieving certain milestones, the
Purchaser will pay ACG additional consideration of €875,000 payable
in common shares of OGI to be valued in accordance with a
volume-weighted average price formula described in the investment
agreement. The issuance of the OGI shares is subject to
compliance with TSXV corporate policies.
Alpha-Cannabis' Managing Directors Alexander Klomsdorff and newly appointed Dr.
Volker Christoffel are pleased that
the agreement with Organigram has now been formally finalized. ACG
has been preparing the development and production of further
cannabis based products for the swiftly growing German and European
Markets following their recent product launch of "Cannabidiol alpha
DAC". "We look forward to a strong and fruitful partnership with
our Canadian partners as we see significant potential in jointly
materializing the medicinal benefits of Cannabinoids" ACG's
Managing Directors stated.
"As we continue to build the framework of our international
medical business, finding the right partners in the right markets
has been a priority for our company," stated Greg Engel, CEO at Organigram. "This
relationship is a perfect example of two companies coming together
towards a common goal, and we're very excited to build our business
in Germany through our partners at
alpha-cannabis® Pharma GmbH"
About alpha-cannabis® Pharma GmbH
Established in 2016, Alpha-Cannabis Germany is strategically
positioned to serve the German medical cannabis market which is
quickly becoming one of the largest markets for medical cannabis in
the world. Additionally, the German market is positioned as a
potential gateway to supplying other European markets. With team of
highly experienced and reputable specialists from the
pharmaceutical industry with scientific and business backgrounds,
ACG is focused on the development, production and marketing of
Cannabis based APIs (Active Pharmaceutical Ingredients) and
pharmaceuticals. ACG's activities cover the spectrum of
cannabinoids. The company enjoys a strong network of professional
partners throughout Germany and
its recently announced launch of a CBD kit will be available in
over 20,000 pharmacies throughout Germany, Austria and Switzerland.
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 cannabis and cannabis-derived products in
Canada.
Organigram is focused on producing the highest-quality,
indoor-grown cannabis for patients and adult recreational consumers
in Canada, as well as developing
international business partnerships to extend the Company's global
footprint. In anticipation of the legal adult use recreational
cannabis market in Canada,
Organigram has developed a portfolio of brands including The Edison
Cannabis Company, Ankr Organics, Trailblazer and Trailer Park Buds.
Organigram's primary facility is located in Moncton, New Brunswick and the Company is
regulated by the Health Canada.
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 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
interpretation of the Cannabis Act and promotional activities, the
availability of funds, 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.
For more information on OGI, please visit: www.Organigram.ca
SOURCE OrganiGram