OrganiGram Holdings Inc. will sell 14,285,715 units at C$3.50 apiece in a bought-deal offering with a syndicate of underwriters led by Eight Capital.
The company also granted the underwriters an overallotment option to buy up to an additional 15% of the units.
Each unit consists of 1 common share and 0.5 common share purchase warrant. Each warrant allows the purchase of 1 common share at an exercise price of C$4.00 for a period of 18 months after the offering closes.
Gross proceeds from the offering are expected to be about C$50 million, or C$57.5 million if underwriters fully exercise the overallotment option.
OrganiGram will use the net proceeds to fund its expansion program to construct an indoor cannabis production facility in Canada. It plans to use a portion of the proceeds for working capital, general corporate purposes and to actively pursue strategic investments through international opportunities.
The offering is expected to close Dec. 18, subject to customary closing conditions, including approvals from the TSX Venture Exchange and applicable securities regulatory authorities.
