Organigram Repays Credit Facilities with Bank of Montreal
April 01 2021 - 9:00PM
Business Wire
In discussions for new revolving facility to
maintain financial flexibility
Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI), the parent
company of Organigram Inc. (collectively, the “Company” or
“Organigram”), a leading licensed producer of cannabis, is pleased
to announce that the Company has repaid all outstanding balances
(approximately $58.5 million) (the “Repayment”) under the
facilities provided under its credit agreement (the “Credit
Agreement”) dated November 27, 2020, with Bank of Montreal (“BMO”)
as lead arranger and agent as well as a syndicate of other
lenders.
The Repayment results in annual interest savings of $2.7 million
based on the outstanding balance at the time of Repayment. After
giving effect to the Repayment, the Company’s pro forma cash
position is $235 million.
The Company is in discussions with BMO to amend the Credit
Agreement to provide continuing support and flexibility to
Organigram in growing its business on revised terms and
conditions.
About Organigram Holdings
Inc.
Organigram Holdings Inc. is a NASDAQ Global Select and TSX
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 high-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. Organigram has also developed a
portfolio of legal adult use recreational cannabis brands including
The Edison Cannabis Company, Indi, SHRED and Trailblazer.
Organigram's facility is located in Moncton, New Brunswick and the
Company is regulated by the Cannabis Act and the Cannabis
Regulations (Canada).
This news release contains forward-looking information. Often,
but not always, forward-looking information can be identified by
the use of words such as “plans”, “expects”, “estimates”,
“intends”, “anticipates”, “believes” or variations of such words
and phrases or state that certain actions, events, or results
“may”, “could”, “would”, “might” or “will” be taken, occur or be
achieved. Forward-looking information involves known and unknown
risks, uncertainties and other factors that may cause actual
results, events, performance or achievements of Organigram to
differ materially from current expectations or future results,
performance or achievements expressed or implied by the
forward-looking information contained in this news release. Risks,
uncertainties and other factors involved with forward-looking
information could cause actual events, results, performance,
prospects and opportunities to differ materially from those
expressed or implied by such forward-looking information include
factors and risks that could impact the outcome of negotiations and
change availability of the Facilities from time to time and the
applicable terms thereof including market and credit conditions,
general risks related to COVID-19 and risks as disclosed in as
disclosed in the Company’s most recent annual information form,
management’s discussion and analysis and other Company documents
filed from time to time on SEDAR (see www.sedar.com) and filed or
furnished to the Securities and Exchange Commission on EDGAR (see
www.sec.gov). Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date
of this press release. Although the Company believes that the
assumptions and factors used in preparing the forward-looking
information in this news release are reasonable, undue reliance
should not be placed on such information and no assurance can be
given that such events will occur in the disclosed time frames or
at all. The forward-looking information included in this news
release are made as of the date of this news release and the
Company disclaims any intention or obligation, except to the extent
required by law, to update or revise any forward-looking
information, whether as a result of new information, future events
or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20210401005972/en/
For Investor Relations enquiries: Amy Schwalm Vice President,
Investor Relations Amy.Schwalm@organigram.ca (416) 704-9057
For Media enquiries: Marlo Taylor
mtaylor@gagecommunications.ca
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