MONCTON, NB, Nov. 10, 2020 /PRNewswire/ - Organigram
Holdings Inc. (NASDAQ: OGI) (TSX: OGI), the parent company of
Organigram Inc. (the "Company" or "Organigram"), a
leading licensed producer of cannabis, announced today an
underwritten public offering of units of the Company (the
"Units") whereby a syndicate of underwriters, led by
Canaccord Genuity Corp., has agreed to purchase 32,500,000 Units
from the Company at a price of C$1.85
per Unit, for total gross proceeds of C$60,125,000 (the "Offering").
Each Unit will be comprised of one common share of the Company
(a "Common Share") and one half of one common share purchase
warrant of the Company (each full common share purchase warrant, a
"Warrant"). Each Warrant will be exercisable to acquire one
common share of the Company (a "Warrant Share") for a period
of 3 years following the closing date of the Offering at an
exercise price of C$2.50 per Warrant
Share, subject to adjustment in certain events.
In addition, the Company has granted the underwriters a 30-day
option to purchase up to an additional 15% of the Units offered in
the proposed Offering on the same terms and conditions.
The Offering is expected to close on November 12, 2020 and will be subject to market
and other customary conditions, including approvals of the Toronto
Stock Exchange and the NASDAQ.
The Company expects to use the net proceeds from the Offering to
repay indebtedness, and for working capital and other general
corporate purposes.
The Units will be offered pursuant to a prospectus supplement
(the "Prospectus Supplement") to its short form base shelf
prospectus dated November 22, 2019
(the "Base Shelf Prospectus") to be filed with the
securities commissions or similar securities regulatory authorities
in each of the provinces and territories of Canada. In addition, the Prospectus Supplement
will be filed with the United States Securities and Exchange
Commission (the "SEC") as a supplement to the Company's
registration statement on Form F-10 (SEC File No. 333-234564) (the
"Registration Statement") under the United
States/Canada Multi-Jurisdictional Disclosure System which
includes the Base Shelf Prospectus. The Prospectus Supplement, the
Base Shelf Prospectus and the Registration Statement contain
important detailed information about the Company and the proposed
Offering. Prospective investors should read the Prospectus
Supplement, the Base Shelf Prospectus and the Registration
Statement and the other documents the Company has filed on
SEDAR and EDGAR before making an investment decision.
Copies of the Prospectus Supplement, following filing thereof,
and the Base Shelf Prospectus will be available on SEDAR at
www.sedar.com and copies of the Prospectus Supplement and the
Registration Statement will be available on EDGAR on the SEC's web
site at www.sec.gov. Copies of the Prospectus Supplement, following
filing thereof, the Base Shelf Prospectus and the Registration
Statement may also be obtained in Canada from Canaccord Genuity Corp., 161 Bay
Street, Suite 3000, Toronto, ON
M5J 2S1 and in the United States
from Canaccord Genuity LLC, 99 High Street, Suite 1200,
Boston, Massachusetts 02110, Attn:
Syndicate Department, by telephone at (617) 371-3900, or by email
at prospectus@canaccordgenuity.com.
No securities regulatory authority has either approved or
disapproved of the contents of this press release. This press
release is for information purposes only and shall not constitute
an offer to sell or the solicitation of an offer to buy, nor shall
there be any sale of these securities in any state or jurisdiction
in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of any
such state or jurisdiction.
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, Ankr Organics 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).
Forward Looking Statements
This news release contains forward-looking information and
forward-looking statements (together, "forward-looking
information") including statements regarding the terms, timing
and potential completion of, and use of proceeds from, the
Offering. 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 including
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) including that the
Offering may not be completed on the terms indicated or at all, the
Company may be unsuccessful in satisfying the conditions to closing
of the Offering and the Company's use of proceeds of the Offering
may differ from those indicated. 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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SOURCE OrganiGram
