OrganiGram Holdings Inc. (TSXV:OGI)(OTCQB:OGRMF) (“OrganiGram” or the “Company”) is pleased to announce that it has entered into a letter of engagement with Dundee Securities Ltd. (the “Lead Underwriter”) on behalf of a syndicate of underwriters (the “Underwriters”) under which the Underwriters have agreed to purchase 9,860,000 common shares of the Company (the “Shares”), on a “bought deal” basis pursuant to the filing of a short form prospectus, subject to all required regulatory approvals, at a price per Share of $3.55 (the “Offering Price”), for total gross proceeds of $35,003,000 (the “Offering”).
The Company has agreed to grant the Underwriters an over-allotment option to purchase up to an additional 1,479,000 Shares at the Offering at the Offering Price, exercisable in whole or in part, at any time on or prior to the date that is 30 days following the closing of the Offering. If this option is exercised in full, an additional $5,250,450 will be raised pursuant to the Offering and the aggregate proceeds of the Offering will be $40,253,450.
The Company intends to use the net proceeds of the Offering for capital expenditures and for working capital and general corporate purposes.
The Shares will be offered by way of a short form prospectus to be filed in all of the provinces of Canada, excluding Quebec, pursuant to National Instrument 44-101 – Short Form Prospectus Distributions.
The closing date of the Offering is scheduled to be on or about December 7, 2016 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange and the applicable securities regulatory authorities.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the United States Securities Act of 1933, as amended, and applicable state securities laws.
For more information, visit www.organigram.ca
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”).
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 expectation. Important factors – including the availability of funds, 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.
Chief Operating Officer
(506) 801-3567OrganiGram Holdings Inc.
Director of Investor and Media Relations