Offering Proceeds Support 40,000 kg/annum
Expansion
MONCTON, NB, Dec. 18, 2017 /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, on a bought
deal basis, including the full exercise of the over-allotment
option. As such, a total of 16,428,572 Units of the Company were
sold at a price of $3.50 per Unit,
for aggregate gross proceeds of $57,500,002 (the "Offering"). The Offering
was completed by a syndicate of underwriters led by Eight Capital,
and including Canaccord Genuity Corp., GMP Securities L.P., Mackie
Research Capital Corporation and PI Financial Corp.
Each Unit consisted of one common share of the Company (a
"Share") and one-half of one common share purchase warrant
(each whole common share purchase warrant, a "Warrant").
Each Warrant entitles the holder thereof to acquire one Share at a
price of $4.00 until June 18, 2019.
The Company intends to use approximately 80% of the net proceeds
of the Offering to commence and carry out part of the construction
of an additional 255,000 of production space at its Moncton campus (the "Expansion"). The
Expansion costs are expected to be funded by the proceeds of the
Offering, debt financing and expected positive cash flow from
operations. The remaining proceeds from the Offering are
anticipated to be applied towards general working capital purposes
and strategic international opportunity development.
The Units were offered and sold by way of a short form
prospectus filed in each of the provinces of Canada, excluding Quebec, and offered and sold in the United States to certain purchasers, who
are, or are purchasing for the account or benefit of, one or more
U.S. persons or persons in the United
States, each of whom qualifies as a "qualified institutional
buyer" as defined in Rule 144A under the United States Securities
Act of 1933, as amended.
The securities referred to in this news release have not been,
nor will they be, registered under the United States Securities Act
of 1933, as amended (the "1933 Act"), and may not be offered
or sold within the United States
or to, or for the account or benefit of, U.S. persons absent U.S.
registration or an applicable exemption from the U.S. registration
requirements. This news release does not constitute an offer
for sale of securities for sale, nor a solicitation for offers to
buy any securities. Any public offering of securities in
the United States must be made by
means of a prospectus containing detailed information about the
company and management, as well as financial statements.
"United States" and "U.S. person" are as defined in Regulation S
under the 1933 Act.
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 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.
For more information, visit www.organigram.ca
SOURCE OrganiGram