Organigram Announces Launch of Overnight Marketed Public Offering
27 March 2024 - 10:06AM
Business Wire
Organigram Holdings Inc. (“Organigram” or the “Company”) (TSX:
OGI; NASDAQ: OGI), announces today an overnight marketed public
offering of units of the Company (the “Units”) for total gross
proceeds of approximately C$25 million (the “Offering”). The
Offering is expected to be completed pursuant to an underwriting
agreement to be entered into between the Company and ATB Securities
Inc., as lead underwriter, on behalf of itself and a syndicate of
underwriters including A.G.P. Canada Investments ULC. The Offering
will be made in the United States through the lead underwriter's
U.S. affiliate, ATB Capital Markets USA Inc.
The Units are expected to be comprised of common shares of the
Company and common share purchase warrants of the Company
(“Warrants”). The final composition of the Units and the terms of
the Warrants will be determined in the context of the market.
The Offering is expected to be priced in the context of the
market with the price, total size and other final terms of the
Offering to be determined at the time of entering into a definitive
underwriting agreement between the Company and the underwriters. In
addition, the Company will grant the underwriters an over-allotment
option exercisable for a period of 30 days from the closing date of
the Offering to purchase up to an additional 15% of the Offering,
which will be comprised of additional Units at the Offering
price.
The Offering is expected to close on April 2, 2024 and will be
subject to market and other customary conditions, including the
approval of the Toronto Stock Exchange and compliance with the
notification rules of NASDAQ. There can be no assurance as to
whether or when the Offering may be completed, or as to the actual
size or terms of the Offering.
The Company expects to use the net proceeds from the Offering to
fund growth initiatives and for general corporate purposes. The
Company sees compelling opportunities for accretive acquisitions
and investments in both the Canadian market and international
federally legal cannabis and hemp markets to deliver long-term
value for shareholders.
The Units will be offered pursuant to a prospectus supplement
(the “Prospectus Supplement”) to the Company’s short form base
shelf prospectus dated October 6, 2023 (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. 333-274686) (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. 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.sedarplus.ca and copies of the Prospectus Supplement and the
Registration Statement will be available on EDGAR on the SEC’s
website at www.sec.gov. Copies of the Prospectus Supplement,
following filing thereof, the Base Shelf Prospectus and the
Registration Statement may also be obtained 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 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 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20240326138489/en/
For Media enquiries:
Megan McCrae Senior Vice President, Global Brands and Corporate
Affairs megan.mccrae@organigram.ca Organigram
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