ORGANIGRAM ENTERS INTO LETTER OF INTENT WITH FARM CREDIT CANADA FOR $10 MILLION
Company also Announces $5.3 Million in Exercised Warrants to be Allocated to Strategic Expansion Plans
MONCTON, NEW BRUNSWICK‐ /CNW/Dec. 18, 2017 ‐ Organigram Holdings Inc. (TSX VENTURE:OGI)(OTCQX:OGRMF) (the “Company” or “Organigram”), a leading producer of medical marijuana, is pleased to announce that it has entered into a Letter of Intent (“LOI”) with Farm Credit Canada (“FCC”) for a loan in the amount of $10 million. The consummation of the loan is subject to customary closing conditions, including any required regulatory consent.
Organigram’s CEO, Greg Engel was adamant about the support the Company has seen from FCC, noting this is the third loan received by the Company in the past three years. “We have had a long and supportive relationship with FCC and are grateful for their ongoing support. This loan represents another step to enable the Company to proceed with its previously announced expansion plan and in conjunction with our recent $57 million bought deal financing, capitalizes Organigram for future growth. This increase in debt financing moves the Company to a more optimized capital structure with lower cost of capital.”
Additionally, the Company announces proceeds in the current fiscal year to date (which began on September 1, 2017) of $5,345,124 from the exercise of 4,111,634 warrants.
Securing these funds represents another milestone, permitting the Company to accelerate its expansion plans at its Moncton campus towards 65,000 kg per year of indoor grown product when fully built out.
For more information, visit www.organigram.ca