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Organigram Successfully Closes Previously Announced Underwritten Public Offering

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Organigram Holdings Inc. successfully closes a public offering, raising C$28.8 million in gross proceeds to enhance its balance sheet. The Company sold 8,901,000 Units at C$3.23 per Unit, including the exercise of the over-allotment option. Each Unit comprises a Common Share and a Warrant. The net proceeds will be used for growth initiatives and general corporate purposes.
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The successful closing of Organigram Holdings Inc.'s underwritten public offering, resulting in C$28.8 million in gross proceeds, demonstrates the company's ability to attract capital investment, which is a positive signal for investors. This infusion of capital strengthens the company's balance sheet, potentially improving its financial ratios and creditworthiness. It is noteworthy that the offering was oversubscribed, with the full exercise of the over-allotment option, indicating investor confidence.

From a financial perspective, the terms of the Warrants could be seen as a strategic move to incentivize long-term investment while providing a potential future cash inflow if the Warrants are exercised. However, the exercise price of C$3.65 per Warrant Share, which is above the offering price, suggests confidence by the company in its future performance and stock price appreciation.

Investors should monitor how the net proceeds are allocated towards growth initiatives, as these decisions can significantly influence the company's future revenue streams and market position. The specifics of these growth initiatives and their alignment with the company's strategic goals will be a determining factor in assessing the potential return on this investment.

The capital raise by Organigram within the cannabis industry context indicates that the company is gearing up to either expand its market share, innovate its product line, or improve operational efficiencies. Given the competitive nature of the cannabis market, with rapidly changing regulatory landscapes and consumer preferences, these funds could provide the necessary agility for Organigram to capitalize on new opportunities or to fortify its position against competitors.

Investors should consider the saturation of the market and the regulatory challenges that could impact the effectiveness of the growth initiatives funded by this Offering. The company's ability to deploy capital effectively in such a dynamic industry is important for long-term success. Additionally, the impact of this offering on existing shareholders' equity, through potential dilution, is a factor to be considered when evaluating the company's market valuation.

The legal framework within which this offering has taken place, including the use of a Base Shelf Prospectus and the United States/Canada Multi-Jurisdictional Disclosure System, is designed to streamline the capital-raising process. This suggests that Organigram is well-prepared and has taken the necessary legal steps to comply with securities regulations in both Canada and the United States. The Prospectus Supplement and Registration Statement are key documents that provide transparency and detailed information, which is vital for investor trust and the integrity of the markets.

It is also important to recognize that the issuance of Warrants as part of the Units could have legal implications in terms of shareholder rights and the company's governance structure, depending on how many Warrant Shares are eventually converted. This could affect voting power distributions and control dynamics within the company, which are important considerations for current and prospective shareholders.

Including over-allotment Company raises C$28.8 million in gross proceeds improving already strong balance sheet

TORONTO--(BUSINESS WIRE)-- Organigram Holdings Inc. (“Organigram” or the “Company”) (TSX: OGI; NASDAQ: OGI) announces today the closing of its previously announced underwritten public offering of units of the Company (the “Units”) for total gross proceeds of C$28,750,230 (the “Offering”). The Company sold 8,901,000 Units at a price of C$3.23 per Unit, which included 1,161,000 Units sold pursuant to the exercise in full of the Underwriters’ over-allotment option.

Each Unit is comprised of one common share of the Company (a “Common Share”) and one-half of one Common Share purchase warrant (each full common share purchase warrant, a “Warrant”). Each Warrant is exercisable to acquire one Common Share (a “Warrant Share”) for a period of four years following the closing date of the Offering at an exercise price of C$3.65 per Warrant Share, subject to adjustment in certain events.

ATB Securities Inc. (“ATB”), as the lead underwriter for the Offering, and A.G.P. Canada Investments ULC (together with ATB, the “Underwriters”) acted as the underwriters for the Offering. The Units were offered in the United States through the Underwriters’ broker-dealer affiliates or agents. The Company expects to use the net proceeds from the Offering to fund growth initiatives and for general corporate purposes.

In connection with the Offering, the Company filed a prospectus supplement dated March 27, 2024 (the “Prospectus Supplement”) to the Company’s short form base shelf prospectus dated October 6, 2023 (the “Base Shelf Prospectus”) with the securities commissions or similar securities regulatory authorities in each of the provinces and territories of Canada. In addition, the Prospectus Supplement was 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. 333-274686) (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 Offering.

Copies of the Prospectus Supplement and the Base Shelf Prospectus are available on SEDAR+ at www.sedarplus.ca and copies of the Prospectus Supplement and the Registration Statement are available on EDGAR on the SEC’s website at www.sec.gov. Copies of the Prospectus Supplement, the Base Shelf Prospectus and the Registration Statement may also be obtained in from ATB Securities Inc., 66 Wellington Street West, Suite 3530, Toronto, Ontario M5K 1A1, Attn: Jay Lewis, by telephone at (647) 688-7077, or by email at ogi-prospectus@atb.com.

No securities regulatory authority has either approved or disapproved of the contents of this news release. This news 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

Organigram is a NASDAQ Global Select Market and TSX listed company whose wholly owned subsidiaries include Organigram Inc. a licensed producer of cannabis, cannabis- derived products and cannabis infused edibles in Canada.

Organigram is focused on producing high-quality, cannabis for patients and adult recreational consumers, as well as developing international business partnerships to extend the Company’s global footprint. Organigram has also developed and acquired a portfolio of legal adult-use recreational cannabis brands, including Edison, Holy Mountain, Big Bag O’ Buds, SHRED, SHRED’ems, Monjour, Laurentian, Tremblant Cannabis and Trailblazer. Organigram operates facilities in Moncton, New Brunswick and Lac-Supérieur, Quebec, with a dedicated edibles manufacturing facility in Winnipeg, Manitoba. The Company is regulated by the Cannabis Act and the Cannabis Regulations (Canada).

Forward-Looking Information

This news release contains forward-looking information. 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 include changes to market conditions, consumer preferences and regulatory climate and 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.sedarplus.ca) and filed or furnished to the SEC on EDGAR (see www.sec.gov) including that the Company’s use of the net 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 news 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.

For Media enquiries:

Megan McCrae

Senior Vice President, Global Brands and Corporate Affairs

megan.mccrae@organigram.ca

Organigram

For Investor enquiries:

Max Schwartz

Director of Investor Relations

max.schwartz@organigram.ca

Organigram

Source: Organigram Holdings Inc.

Organigram Holdings Inc. raised C$28.8 million in gross proceeds from the public offering.

Organigram Holdings Inc. sold 8,901,000 Units in the public offering.

The price per Unit in the public offering was C$3.23.

Each Unit comprises a Common Share and a Warrant.

Organigram Holdings Inc. will use the net proceeds for growth initiatives and general corporate purposes.
OrganiGram Holdings Inc.

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About OGI

as part of canada’s marihuana for medical purposes regulations (mmpr), organigram (tsx-v:ogi) is atlantic canada's original licensed producer of medical marijuana. we are dedicated to consistently providing our clients with the highest quality, organically grown medicine and service. if you have questions or want to learn more, visit www.organigram.ca or give our client services team a call at 1-855-961-9420.