Organigram Announces $50 Million Bought Deal For Expansion Plans

Organigram Holdings (TSXV:OGI; OTCQB:OGRMF) announced it entered into a letter of engagement with Eight Capital for the purchase of 14,285,715 units of the Company on a “bought deal” for gross proceeds of $50,000,003.
As quoted in the press release:

The Company has agreed to grant the Underwriters an over-allotment option to purchase up to an additional 15% of the Units at the Issue 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 $7,500,000 will be raised pursuant to the Offering and the aggregate proceeds of the Offering will be $57,500,003.
Each Unit will be comprised of one common share of the Company (a “Common Share”) and one-half of one Common Share purchase warrant (each whole warrant a “Warrant”). Each Warrant shall entitle the holder thereof to purchase one Common Share at an exercise price of $4.00, for a period of 18 months following the closing of the Offering.
The Company intends to use the net proceeds of the Offering within the next 18 months to fund its expansion program to construct one of the largest indoor cannabis production facilities in Canada. The expansion plans are expected to add up to 40,000kg/year of incremental capacity which would bring the Company’s total production capacity to approximately 65,000kg/year, as further described below. In addition to its expansion program, the Company intends to use a portion of the net proceeds of the Offering for working capital, general corporate purposes and to actively pursue strategic investments through international opportunities.

Click here to read the full press release.

Source: www.marketwired.com