BAT Exercises Top-Up Rights to Invest $6.3 Million Resulting in an Increase in Equity Position from 18.8% to 19.5%
February 28 2022 - 6:23PM
Business Wire
Organigram Holdings Inc. (TSX: OGI and NASDAQ: OGI), the parent
company of Organigram Inc. (collectively “Organigram” or the
“Company”), a leading licensed producer of cannabis, is pleased to
announce that BAT has invested an additional C$6.3 million into
Organigram to enhance its equity ownership position in Organigram
from 18.8% to 19.5% as of December 31, 2021 by exercising its
rights pursuant to an investor rights agreement (the “Investor
Rights Agreement”). The Investor Rights Agreement was entered into
between Organigram and BAT in connection with the formation of the
Product Development Collaboration (the “PDC”) between the two
companies and the strategic investment of C$221 million made by BAT
in Organigram in March 2021.
The Investor Rights Agreement allows BAT periodic top-up rights
to permit maintenance of its percentage ownership following certain
issuances. The price per share offered to BAT is consistent with
the price per share at which the relevant issuances were made
subject to maximum discount requirements of the TSX.
The exempt issuances by Organigram in the three-months ended
December 31, 2021 related primarily to the acquisition of
Laurentian Organic Inc. pursuant to which 10,896,442 shares were
issued. In addition, 83,408 shares were issued in connection with
exercises of share-based compensation.
The Equity Top Up
BAT has purchased 2,659,716 common shares in Organigram at an
average price of $2.3868 per share (the “Equity Top-Up”) for gross
proceeds of $6,348,319 and now holds a pro-forma 19.5% equity
interest based on the issued shares outstanding in Organigram of
313,477,365 as at December 31, 2021 (the end of the period in
relation to which the rights were exercised) adjusted for the
Equity Top-Up (310,817,649 shares outstanding plus 2,659,716 issued
under the Equity Top-Up). The pro-forma equity interest as at the
date hereof is 19.4%.
BAT and Organigram are approaching the first anniversary of the
formation of the Product Development Collaboration (PDC) on March
10, 2021.
“Innovation is an important cornerstone of Organigram’s core
strategy and the Product Development Collaboration with BAT
underscores our commitment to the development of disruptive,
consumer-focused cannabis products,” said Beena Goldenberg, Chief
Executive Officer. “We are pleased with the successful launch of
the PDC and the progress we are making so far.”
Organigram Maintains Strong Cash Position
Prior to the Equity Top-Up, Organigram enjoyed a strong cash
position of C$168 million reported as at the end of Fiscal Q1-2022
(November 30, 2021). The C$6.3 million received from the Equity
Top-Up further strengthens the Company’s balance sheet for general
corporate purposes.
About Organigram Holdings Inc.
Organigram Holdings Inc. is a NASDAQ Global Select Market and
TSX listed company whose wholly-owned subsidiaries include:
Organigram Inc. and Laurentian Organic Inc., licensed producers of
cannabis and cannabis-derived products in Canada, and The Edibles
and Infusions Corporation, a licensed manufacturer of
cannabis-infused soft chews in Canada.
Organigram is focused on producing high-quality, cannabis for
patients and adult recreational consumers, as well as developing
international business partnerships to extend the Company’s global
footprint. Organigram has also developed and acquired a portfolio
of legal adult-use recreational cannabis brands, including Edison,
Big Bag O’ Buds, SHRED, SHRED’ems, Monjour, Laurentian, Tremblant
Cannabis and Trailblazer. Organigram operates facilities in
Moncton, New Brunswick and Lac-Supérieur, Quebec, with a dedicated
edibles manufacturing facility in Winnipeg, Manitoba. The Company
is regulated by the Cannabis Act and the Cannabis Regulations
(Canada).
Forward-Looking Information
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
scheduling changes and factors and risks 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/20220228006194/en/
For Investor Relations enquiries: investors@organigram.ca
For Media enquiries: Megan McCrae, Senior Vice President
Marketing and Communications megan.mccrae@organigram.ca
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