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Organigram Holdings Inc
Symbol OGI
Shares Issued 124,494,372
Close 2018-01-30 C$ 4.77
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Organigram closes $115-million debenture offering

2018-01-31 11:11 ET - News Release

Mr. Paolo De Luca reports


Organigram Holdings Inc. has closed its previously announced short form prospectus offering of convertible unsecured debentures of the company, on a bought deal basis, including the full exercise of the overallotment option. As such, a total of 115,000 convertible debentures were sold at a price of $1,000 per convertible debenture for aggregate gross proceeds of $115-million. The offering was completed by a syndicate of underwriters led by Eight Capital and including Canaccord Genuity Corp., GMP Securities LP and Mackie Research Capital Corp.

Each convertible debenture has a maturity date of Jan. 31, 2020, and will bear interest from the date of closing at 6 per cent per year, payable semi-annually on June 30 and Dec. 31 of each year commencing on June 30, 2018. Each convertible debenture is convertible, at the option of the holder, into common shares of the company at any time prior to the close of business on the earlier of: (i) the business day immediately preceding the maturity date; and (ii) if subject to redemption in the event of a change of control, the business day immediately preceding the payment date, at a conversion price of $5.42 per common share, subject to adjustment in certain events and to forced conversion by the company in accordance with the indenture governing the convertible debentures. The company may force conversion of the aggregate principal amount of the then outstanding convertible debentures at the conversion price on not less than 30 days of notice should the daily volume-weighted average trading price of the common shares be greater than $7.05 for any 10 consecutive trading days.

The company has earmarked approximately 70 per cent of the net proceeds of the offering for strategic domestic expansion, strategic international opportunities and to develop a hemp market presence, with the remaining 30 per cent for working capital and general corporate matters.

The convertible debentures were offered and sold by way of a short form prospectus filed in each of the provinces of Canada, excluding Quebec.

Listing and trading on the TSX Venture Exchange

The TSX-V has accepted the listing of the convertible debentures and the debentures commence trading on the exchange under the stock symbol OGI.DB on Wednesday, Jan. 31, 2018.

The convertible debentures will be quoted and traded on an accrued interest basis, meaning that all bids, offers and trades of the convertible debentures will reflect only the capital portion of the convertible debentures and will not reflect accrued interest. Accrued interest must be reflected in the seller's and buyer's settlement amount and must be reflected on the confirmation with clients. The minimum trading unit of convertible debentures is $1,000 and a board lot of convertible debentures is $1,000.

About Organigram Holdings Inc.

Organigram Holdings is a TSX-V-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, N.B., and the company is regulated by the Access to Cannabis for Medical Purposes Regulations (ACMPR).

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