MONCTON, NEW BRUNSWICK–(Marketwired – June 2, 2016) – OrganiGram Holdings Inc. (TSX VENTURE:OGI)(OTCQB:OGRMF) (“OrganiGram” or the “Company”) is pleased to announce that it has closed its previously announced short form prospectus offering, on a bought deal basis, including the full exercise of the over-allotment option. As such, a total of 9,867,000 Units of the Company were sold at a price of $1.05 per Unit, for aggregate gross proceeds of $10,360,350 (the “Offering”). The Offering was completed by a syndicate of underwriters led by Dundee Securities Ltd., and including GMP Securities L.P., Mackie Research Capital Corporation and PI Financial Corp.
Each Unit consisted of one common share of the Company (a “Share”) and one-half of one common share purchase warrant (each whole common share purchase warrant, a “Warrant”). Each Warrant entitles the holder thereof to acquire one Share at a price of $1.40 until December 2, 2017.
The Company intends to use approximately 90% of the net proceeds of the Offering to expand its production capacity at its main facility through the build out and construction of an extension to the Company’s existing facility containing additional grow rooms, with the remaining proceeds to be applied towards general working capital purposes.
The Units were offered and sold by way of a short form prospectus filed in each of the provinces of Canada and offered and sold in the United States to selected accredited investors on a substituted purchaser basis in reliance on the registration exemption provided by Rule 506(b) of Regulation D under the United States Securities Act of 1933, as amended.
The securities referred to in this news release have not been, nor will they be, registered under the United States Securities Act of 1933, as amended (the “1933 Act”), and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This news release does not constitute an offer for sale of securities for sale, nor a solicitation for offers to buy any securities. Any public offering of securities in the United States must be made by means of a prospectus containing detailed information about the company and management, as well as financial statements. “United States” and “U.S. person” are as defined in Regulation S under the 1933 Act
In addition, the Company would like to take this opportunity to announce that Mr. Peter Amirault has joined the Company’s Board of Directors. Peter is currently the President of BML Group Limited in Toronto, a holding company with interests in real estate development and private investments. Prior to joining BML Group, Peter held varying executive roles including: President of Swiss Chalet North America for the Cara Group of Companies, CEO of Creemore Springs Brewery Ltd, Senior Vice President of Molson Coors Canada, Managing Director of Sleeman Brewing Ltd, along with senior roles at Nestle Canada and The Premium Beer Company of Toronto. Peter holds a BBA from Acadia University and an MBA from The Schulich School of Business. Peter’s previous board experience and roles at senior management levels will bring a wealth of knowledge to the corporate director team at Organigram.
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.
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, including but not limited to the intended use of proceeds of the Offering, 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.
Director of Investor and Media Relations
OrganiGram Holdings Inc.
(506) 801-8986
www.organigram.ca