Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI), (the
“Company” or “Organigram”), a leading licensed
producer of cannabis, announced today that it has closed the first
of three tranches of the previously announced C$124,559,674
follow-on strategic equity investment (the “Investment”) by
BT DE Investments Inc. (the “Investor”), a wholly owned
subsidiary of British American Tobacco plc (“BAT”). Pursuant
to the first tranche closing, the Investor acquired 12,893,175
common shares of the Company at a price of C$3.2203 per share (the
“Per Share Price”) for gross proceeds of C$41,519,891. The
remaining 25,786,350 shares subscribed for shall be issued at the
Per Share Price in two further equal tranches on or around August
30, 2024 and February 28, 2025.
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Organigram Announces the First Tranche
Closing from BAT Investment (Photo: Business Wire)
“With this transformational deal now formally approved by
shareholders and with the first tranche funded, we look forward to
delivering on our objectives of geographic and technological growth
as well as product expansion,” said Paolo De Luca, Chief Strategy
Officer of Organigram. “Since we announced this transaction on
November 6, 2023 we have seen tremendous interest from cannabis
companies looking for strategic partnership opportunities and
growth capital. Organigram, with its strong balance sheet and
dedicated Jupiter capital pool, is uniquely positioned to take
advantage of a growing set of emerging opportunities.”
“Jupiter” Strategic Investment Pool Will Accelerate
Organigram’s Growth Ambitions
The majority of the C$124.6 million Investment will be used by
Organigram to create a strategic investment pool, named Jupiter.
Jupiter will target investments in emerging cannabis opportunities
that will enable Organigram to apply its industry-leading
capabilities to new markets. Management has identified that
geographic expansion is a strategic priority and this opportunity
presents the Company with the capital to lay global foundations as
the legal recreational cannabis market continues to see significant
growth. Organigram maintains the highest level of regulatory and
product stewardship and will continue to monitor the cannabis
regulatory environment carefully. As a result, all potential
investments will undertake rigorous legal compliance and due
diligence processes.
Organigram has 10 years of experience within the Canadian
cannabis market and has already made several successful cannabis
investments. The acquisition and integration of the Edibles and
Infusions Corporation, Laurentian Organics Inc., and more recently,
its investment in Phylos Bioscience Inc. has propelled Organigram
to a market leadership position in gummies and hash, as well as
enabling the Company to be first to launch THCV products in Canada.
This proven track record combined with Organigram’s industry
knowledge can now be applied at a larger scale through Jupiter.
Amended and Restated Investor Rights Agreement
In connection with the first tranche closing, the Company and
the Investor entered into an amended and restated investor rights
agreement (the “Amended & Restated IRA”), which amended
and restated the current investor rights agreement dated March 10,
2021 between the Company and the Investor. The Amended &
Restated IRA, among other things, grants the Investor certain
customary registration rights, pre-emptive rights, top-up rights,
information rights, consent rights and nomination rights. A copy of
the Amended & Restated IRA will be available under the
Company’s profile on SEDAR+ at www.sedarplus.ca and on EDGAR at
www.sec.gov.
Further details relating to the Investment can be found in the
press release issued by the Company on November 6, 2023 and the
Company’s management information circular dated December 20, 2023
(the “Circular”).
About Organigram Holdings
Inc.
Organigram Holdings Inc. 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
factors and risks disclosed in the Circular, and 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
Securities and Exchange Commission on EDGAR (see www.sec.gov).
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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version on businesswire.com: https://www.businesswire.com/news/home/20240123036131/en/
For Investor Relations enquiries: Max Schwartz, Director
of Investor Relations investors@organigram.ca
For Media enquiries: Megan McCrae, Senior Vice President
– Marketing and Communications megan.mccrae@organigram.ca
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