MONCTON, NB, March 27, 2019 /CNW/ - Organigram Holdings Inc.
(the "Company") (TSX VENTURE: OGI) (OTCQX: OGRMF), today provided
an update on its previously announced mandatory conversion (the
"Conversion") of the Company's 6.0% convertible unsecured
debentures due January 31, 2020 (the
"Debentures") (OGI.DB).
As announced on February 27, 2019,
the Company elected to exercise its right under the Debenture
Indenture between the Company and the TSX Trust Company dated as of
January 31, 2018 (the "Indenture")
governing the Debentures, to convert all of the principal amount
outstanding of the remaining Debentures on April 1, 2019 (the "Conversion Date") into common
shares of the Company (the "Common Shares").
Pursuant to the terms of the Indenture, the Company may force
the conversion of the aggregate principal amount of the outstanding
Debentures at the conversion price of $5.42 per Common Share when the daily volume
weighted average trading price of the Common Shares on the Exchange
("VWAP") for 10 consecutive trading days exceeds $7.05. As of the close of markets on February 26, 2019, the VWAP exceeded $7.05 for 10 consecutive trading days. The
Company provided the holders of the Debentures with at least 30
days advance written notice of the Conversion.
In order to facilitate the Conversion, trading in the Debentures
will be halted at the open of trading tomorrow, March 28, 2019, and the Debentures will be
delisted from the Exchange effective at market close on
March 29, 2019.
The Company's Common Shares (OGI) and Warrants (OGI.WT.A) will
remain listed and continue to trade on the Exchange.
Since the date of the announcement of the mandatory conversion
by the Company, holders of the Debentures continued to voluntarily
convert their Debentures in accordance with the terms of the
Indenture. Since their issuance on January 31, 2018, $96.2
million of the Debentures have been voluntarily converted
into approximately 17.7 million Common Shares. Therefore, the
estimated remaining total of approximately $18.8 million of the Debentures will be converted
into approximately 3.5 million Common Shares on the Conversion Date
and the accrued interest (less any required deductions or
withholdings) will be paid to the holders. On a cumulative
basis, the Debentures will have resulted in the issuance of
approximately 21.2 million Common Shares. The Company will not
issue fractional Common Shares on the Conversion. Instead, the
Company will, in lieu of delivering a certificate representing such
fractional interest, make a cash payment to the holder of an amount
equal to the fractional interest in accordance with terms of the
Indenture.
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 cannabis and cannabis-derived products in
Canada.
Organigram is focused on producing the highest-quality,
indoor-grown cannabis for patients and adult recreational consumers
in Canada, as well as developing
international business partnerships to extend the company's global
footprint. Organigram has also developed a portfolio of legal adult
use recreational cannabis brands including The Edison Cannabis
Company, Ankr Organics, Trailer Park Buds and Trailblazer.
Organigram's primary facility is located in Moncton, New Brunswick and the Company is
regulated by the Cannabis Act and the Cannabis
Regulations (Canada).
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
This news release contains forward-looking information which
involves known and unknown risks, uncertainties and other factors
that may cause actual events to differ materially from current
expectations. Important factors, including the value of outstanding
debentures as at the Conversion Date, 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. We seek safe harbor.
SOURCE OrganiGram