OrganiGram Secures $6,350,000 in a Non-Brokered Private Placement to Position the Company for National Legalization
MONCTON, NEW BRUNSWICK–(Marketwired – Nov. 5, 2015) – OrganiGram Holdings Inc. (TSX VENTURE:OGI)(OTCQX:OGRMF) (“OrganiGram” or the “Company“) is pleased to announce that, subject to TSX Venture Exchange approval, the Company has secured a non-brokered private placement offering for net proceeds of $6,350,000 (the “Offering”).
The Company will issue an aggregate of 3,298,077 units (“Units”) at a price of $1.04 per Unit (the “Offering Price”) for net proceeds of $3,430,000. Each Unit consists of one common share of the Company (a “Common Share”), and one-half of a share purchase warrant (each whole warrant, a “Warrant”). Each Warrant will be exercisable into one additional Common Share (a “Warrant Share”) of the Company at $1.40 per Warrant Share for a period of eighteen (18) months from closing of the Offering. The Company intends to use the proceeds from the Offering for accelerated facility expansion and general working capital purposes.
In addition, the Company has secured convertible debentures in the aggregate amount of $2,920,000 which carry an interest rate of 6.75{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} and which mature on December 31, 2018. The debentures may be converted by the debenture holder at a ratio of 714.286 shares per $1,000 of the principal amount converted.
“OrganiGram is pleased to have secured this financing. Management appreciates the confidence demonstrated by its Board of Directors, as all members of the Board participated in this financing round. With the newly elected Federal Government’s platform position to legalize recreational marijuana, the Company looks forward to allocating this capital effectively to expand the facility, enhance working capital and continue marketing initiatives.” said Roger Rogers, President & CFO.
It is anticipated that related parties of the Company will acquire shares and warrants under the private placement. Such participation would be considered to be “related party transactions” within the meaning of the TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 (“MI 61-101”). The company intends to rely on the exemptions from the formal valuation and minority approval requirements of MI 61-101 in respect of related party participation as at the time the transaction is agreed to, neither the fair market value of the subject matter of, nor the fair market value of the consideration for, the transaction, insofar as it involves interested parties, exceeds 25 per cent of the Company’s market capitalization.
Completion of this placement is subject to the approval of the TSX Venture Exchange.
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 Marihuana for Medical Purposes Regulations.
On behalf of the board of directors,
Denis Arsenault
Director and CEO
OrganiGram Holdings Inc.
The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press 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 expectation. Important factors – including the availability of funds, the results of financing efforts, the results of operations — 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.
Brett Allan
Director of Investor Relations
OrganiGram Holdings Inc.
(647) 229-6627
www.organigram.ca
- Published in Organigram Holdings
OrganiGram Provides Shareholder Update and Q1 Guidance
MONCTON, NEW BRUNSWICK–(Marketwired – Oct. 21, 2015) – OrganiGram Holdings Inc. (TSX VENTURE:OGI) (OTCQX:OGRMF) (the “Company“) is pleased to provide an update to shareholders.
With the results of the recent Federal election, OrganiGram is well positioned to service the recreational marijuana market, as the only large, organic medical marijuana producer.
“We are confident that our products will be welcomed by all retail distribution points, as a significant portion of the consumers will want to experience an organic option,” said Roger Rogers, President & CFO.
In addition, OrganiGram is continuing to experience an active and growing base of new patients. It has always been a top priority for the Company to ensure the timely registration of all new clients. It is an OrganiGram policy to guarantee patients supply of product at the time of registration and with each and every time a prescription refill is ordered. With the addition of new grow rooms and capacity, the Company has been able to continue their monthly double-digit growth and are quickly approaching 2,000 active registered patients.
The Company is currently in the process of preparing the Audited Year-End Financial Statements and anticipates their release to be in early December. As previously stated in a news release issued on July 30th, the Company was targeting Q4 sales of $500,000. However, this target was exceeded and, thus, based on experience, Management has increased their expectations and guidance for Q1 to be at $900,000 in sales.
“Our growth trend is continuing as planned and we are rolling out our business initiatives with precision. We are receiving very positive feedback on our products and our customer service. All of this aligned with an exceptional management team are providing the desired results for all our stakeholders”, said Roger Rogers, President & CFO.
As announced on September 2, 2015, the Company received approval of four additional grow rooms, increasing the annual production capacity of the facility to 2,100kg. Over the last month, the rooms have been brought online and are entering the Company’s production cycle. The initial harvest from these new rooms is expected in February of 2016.
Following the Supreme Court of Canada ruling in June and subsequent changes to the Health Canada regulations; OrganiGram has been preparing to provide its patients with the option to purchase Medical Marijuana in the form of oil extracts. It is anticipated that the Company will begin shipping oil extract to patients in the near future.
In an ongoing effort to provide the best quality service to patients, the Company has recently completed multiple internal improvements.
Mr. Rogers states, “We recently announced in our newsletter that we have re-branded the company to incorporate our Maritime heritage and theme, updating our website as well as introducing new client offerings while keeping in mind ease of use for our clients. These changes include the branding of strain names, comprehensive product details, and the launching of OGI Buzz to stay updated with the company, as well as additional items included in our welcome and registration packages. These changes will to help onboard our clients smoothly while providing a superior customer experience to all.”
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 Marihuana for Medical Purposes Regulations.
On behalf of the board of directors,
Denis Arsenault
Director and CEO
OrganiGram Holdings Inc.
The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press 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 expectation. Important factors – including the availability of funds, the results of financing efforts, the results of operations — 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.
Brett Allan
Director of Investor Relations
OrganiGram Holdings Inc.
(647) 229-6627
www.organigram.ca
- Published in Organigram Holdings
OrganiGram Holdings Inc. Comments on Colorado Pesticide Lawsuit
MONCTON, NEW BRUNSWICK–(Marketwired – Oct. 19, 2015) – OrganiGram Holdings Inc. (TSX VENTURE:OGI)(OTCQX:OGRMF) (the “Company”) would like to provide its position pertaining to the medical marijuana industry’s use of pesticides during the growing process.
As highlighted by the recent lawsuits filed against a marijuana company operating in Colorado, the use of pesticides within the medical marijuana industry could potentially pose serious health concerns for patients.
OrganiGram has chosen to grow our products with Organic methods and thus produces the highest quality product available, without the use of harmful chemical pesticides. As such, the Company remains a proud holder of the ECOCERT Canada Certification, which validates the organic process under which OrganiGram produces medical marijuana.
“Producing a product with natural components, chemical free and organic processes is one of the core principles on which OrganiGram is based. I believe the recent US lawsuit shed further light on the benefits of the products that we provide to patients. We look forward to continuing to supply medicine that differentiates us from our peers and is the best solution for our clients,” said Roger Rogers, President & CFO.
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 Marihuana for Medical Purposes Regulations.
Please visit www.organigram.ca for more information.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
OrganiGram Holdings Inc.
Brett Allan
Director of Investor Relations
(416) 907-4148
brett@organigram.ca
www.organigram.ca
- Published in Organigram Holdings