Organigram and Strategic Investor to
Collectively Participate in $10
Million Private Placement Debenture into Eviana Health
Corporation
MONCTON, NB, Sept. 14,
2018 /CNW/ - Organigram Holdings Inc. (TSX VENTURE: OGI) (OTCQX:
OGRMF), the parent company of Organigram Inc. (the "Company" or
"Organigram"), a leading licensed producer of medical marijuana, is
pleased to update the market on its proposed investment in Eviana
Health Corporation ("Eviana"). The information provided in
this news release is meant to update and replace the information
previously disseminated by Organigram on June 4, 2018 regarding a proposed investment in
Eviana.
Private Placement Investment in Eviana Debentures
Organigram has signed a term sheet to participate as to 50% in a
private placement debenture offering (the "Debenture Offering") by
Eviana comprised of 10,000 debenture units (the "Debenture Units")
of Eviana, each consisting of: (i) $1,000 principal amount of senior unsecured
convertible debentures of Eviana (the "Debenture") and (ii) one
half of one common share (the "Common Shares") purchase warrant of
the Company (each whole purchase warrant, a "Warrant"). The
balance of the Debenture Offering is proposed to be acquired by an
institutional strategic investor (the "Strategic Investor").
Each full Warrant shall be exercisable by the holder thereof for
870 Common Shares in the capital of Eviana at an exercise price per
Warrant Share of $1.30 for a period
of 24 months from the closing date of the Debenture Offering. The
Debentures will be convertible at a conversion price of
$1.15 per Common Share at the
holder's option, or upon mandatory conversion at the request of
Eviana in the event that at any time following four months plus one
day following the Closing, for any ten consecutive trading days,
the daily volume weighted average closing price of the Common
Shares on the CSE is greater than $2.15.
The Debentures shall bear interest at a rate of 10% per annum
from the date of issue, payable semi-annually in arrears on
June 30 and December 31 of each year, commencing December 31, 2018.
The Debenture Offering is expected to be completed on or about
September 27, 2018, or such earlier
or later date as the Strategic Investor, Organigram and Eviana may
determine.
About Eviana
Eviana is a publicly listed company that was established with
the aim of delivering customized consumer health care products
using natural hemp strains of cannabis sativa for cannabinoid-based
topical creams and products and cosmeceutical and nutraceutical
merchandise.
On September 7, 2018 Eviana
provided a corporate update that the Serbian operations which it
can purchase under an option agreement had begun commercial
production of cannabidiol ("CBD") utilizing Vitalis Supercritical
CO2 extraction. Aside from the extraction facility the Serbian
operations own approximately 60 tonnes of dried hemp ready for
sorting and extraction as well as a 2018 harvest of 250 hectares
expected to yield up to an additional 250 metric tonnes of dried
hemp for sorting and extraction.
Eviana's common shares trade on the Canadian Securities Exchange
(CSE) under the symbol EHC and closed at a price of $1.49 on September 13,
2018.
Board Representation
On closing of the Debenture Offering, Organigram shall be
granted board representation rights, pursuant to which Eviana will
agree to include one Organigram designated candidate for election
to the board of directors of the Company and to solicit support for
such candidate at all shareholder meetings at which directors are
to be elected.
Offtake Sales Agreement
Organigram shall have the right, but not the obligation, to
purchase up to and including 25% (the "Offtake Percentage") of
Eviana's (on a consolidated basis) annual CBD oil (or a comparable
form including, but not limited to, CBD crystals) at 95% of the
agreed raw CBD oil (or equivalent thereof) wholesale market price
for a period of 5 years from the date on which the CBD oil (or
equivalent thereof) is first made commercially available by Eviana
for wholesale (subject to final agreement on terms between
management of both companies).
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
in Canada, Organigram has developed a portfolio of brands
including The Edison Cannabis Company, Ankr Organics and Trailer
Park Buds. Organigram's primary facility is located
in Moncton, New Brunswick and the Company is regulated by
the Access to Cannabis for Medical Purposes Regulations
("ACMPR").
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 on Organigram please
visit: www.Organigram.ca
SOURCE OrganiGram