Welcome!

News Feed Item

OrganiGram Announces Closing of Reverse Takeover and Concurrent Financings for $7.5 Million

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 08/25/14 -- OrganiGram Holdings Inc. (TSX VENTURE: OGI) (formerly, Inform Exploration Corp.) (TSX VENTURE: IX) (the "Company" or "Inform") is pleased to announce that it has, effective August 22, 2014, completed its acquisition (the "Acquisition") of all of the issued and outstanding securities of OrganiGram Inc. ("OGI"), a New Brunswick licensed producer of medical marihuana. The Company is now, through its wholly owned subsidiary OGI, engaged in the licensed production of medical marihuana.

The terms of the Acquisition, which was structured as a Reverse Takeover ("RTO") under the rules and policies of the TSX Venture Exchange (the "TSX-V"), were previously announced by the Company in a release dated June 13, 2014. The shareholders of OGI received common shares of the Company (the "Inform Shares") in exchange for their common shares of OGI (the "OGI Shares") on the basis of 34,500,000 Inform Shares issued at a deemed price of $0.85 per Inform Share in exchange for the 18,678,496 OGI Shares (the "Share Exchange") issued and outstanding. Immediately prior to the Share Exchange, the Company completed a consolidation of the issued and outstanding shares in the capital of Inform (the "Consolidation") on a 1 to 0.8836 basis. The Company will resume trading on the TSX-V on August 25, 2014 under the symbol "OGI".

In connection with the Acquisition, the Company completed two brokered private placement financings (the "Brokered Financings") of common shares for aggregate gross proceeds of approximately $4.3 million based on the sale of 5,058,172 shares at a price of $0.85 per share on a post-Consolidation basis. The Company engaged Jordan Capital Markets Inc. ("Jordan"), and Jacob Securities Inc. ("Jacob") to act as agents on a commercially reasonable efforts basis in connection with the Brokered Financings. As compensation for acting as agent, Jordan and Jacob each received a cash commission (the "Agent's Commission") equal to 6% of the gross proceeds raised (up to a maximum of $2.5 million), and compensation options (the "Agent's Options") entitling the agents to purchase shares (the "Agent's Shares") of the Company equal to 6% of the number of securities sold in the Brokered Financings (up to a maximum of $2.5 million), exercisable at a price of $1.00 per Agent's Share and expiring 12 months from closing of the Brokered Financings. The Agent's Options are subject to accelerated expiry, subsequent to the expiry of a 4 month and 1 day period from the closing of the Brokered Financings, should the common shares of the Company trade at a price of $1.50 per share or more for a period of twenty consecutive days.

Also in connection with the Acquisition, the Company completed a non-brokered private placement financing (the "Non-brokered Financing") of common shares for aggregate gross proceeds of approximately $3.2 million based on the sale of 3,805,277 shares at a price of $0.85 per share on a post- Consolidation basis. In connection with the Non-brokered Financing, the Company an aggregate of $64,260 in finder's fees, and issued finder's options entitling finders that assisted with the Non-brokered Financing to purchase an aggregate of 75,600 shares of the Company (the "Finder's Options"). The Finder's Options are exercisable at a price of $1.00 per Finder's Option and expire 12 months from closing of the Non-brokered Financing. The Finder's Options are subject to accelerated expiry, subsequent to the expiry of a 4 month and 1 day period from the closing of the Non-brokered Financings, should the common shares of the Company trade at a price of $1.50 per share or more for a period of twenty consecutive days.

Proceeds from the Brokered Financings and the Non-brokered Financing will be used for facilities development, marketing and working capital.

"The Team at OrganiGram is proud to have arrived at their go public date and wants to acknowledge the tremendous effort by all involved to make it possible," said Denis Arsenault, Chief Executive Officer of the Company, adding, "the listing on the TSX and the financing secured in the private placement ensures Management has the resources to execute its business plan and position OrganiGram Inc as the leader in the Medical Marijuana industry in Canada. As CEO, it has been a privilege to work with all involved in the effort to get us to this great point in the Company's history."

Medical marihuana has been legally available to Canadians upon the advice of a physician since 2001. Previously, medical marijuana was only available to individuals by applying for access to Health Canada's supplies, obtaining a personal-use production license, or designating a third party to cultivate marihuana on their behalf under license. With the introduction of the Marihuana for Medical Purposes Regulations, the Government of Canada has enabled the establishment of commercial marihuana production and sale by licensed producers.

The Company was incorporated under the Business Corporations Act (British Columbia) and is publicly traded on the TSX-V. The Company was formerly engaged in the acquisition, exploration and development of natural resource properties and has ceased all resource exploration activity.

The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the 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 expectation. Important factors - including the availability of funds, the results of financing efforts, the results of exploration activities -- that 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.

Contacts:
David Doherty
Director
OrganiGram Holdings Inc.
(604) 315-1237

Brett Allan
Director of Investor Relations
OrganiGram Holdings Inc.
(416) 907-4148

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
We are always online. We access our data, our finances, work, and various services on the Internet. But we live in a congested world of information in which the roads were built two decades ago. The quest for better, faster Internet routing has been around for a decade, but nobody solved this problem. We’ve seen band aid approaches like CDNs that attack a niche's slice of static content part of the Internet, but that’s it. It does not address the dynamic services-based Internet of today. It doe...
SYS-CON Events announced today that Numerex Corp, a leading provider of managed enterprise solutions enabling the Internet of Things (IoT), will exhibit at the 19th International Cloud Expo | @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Numerex Corp. (NASDAQ:NMRX) is a leading provider of managed enterprise solutions enabling the Internet of Things (IoT). The Company's solutions produce new revenue streams or create operating...
Qosmos has announced new milestones in the detection of encrypted traffic and in protocol signature coverage. Qosmos latest software can accurately classify traffic encrypted with SSL/TLS (e.g., Google, Facebook, WhatsApp), P2P traffic (e.g., BitTorrent, MuTorrent, Vuze), and Skype, while preserving the privacy of communication content. These new classification techniques mean that traffic optimization, policy enforcement, and user experience are largely unaffected by encryption. In respect wit...
While DevOps promises a better and tighter integration among an organization’s development and operation teams and transforms an application life cycle into a continual deployment, Chef and Azure together provides a speedy, cost-effective and highly scalable vehicle for realizing the business values of this transformation. In his session at @DevOpsSummit at 19th Cloud Expo, Yung Chou, a Technology Evangelist at Microsoft, will present a unique opportunity to witness how Chef and Azure work tog...
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
Although it has gained significant traction in the consumer space, IoT is still in the early stages of adoption in enterprises environments. However, many companies are working on initiatives like Industry 4.0 that includes IoT as one of the key disruptive technologies expected to reshape businesses of tomorrow. The key challenges will be availability, robustness and reliability of networks that connect devices in a business environment. Software Defined Wide Area Network (SD-WAN) is expected to...
Between the mockups and specs produced by analysts, and resulting applications built by developers, there exists a gulf where projects fail, costs spiral, and applications disappoint. Methodologies like Agile attempt to address this with intensified communication, with partial success but many limitations. In his session at @DevOpsSummit at 19th Cloud Expo, Charles Kendrick, CTO at Isomorphic Software, will present a revolutionary model enabled by new technologies. Learn how business and deve...
Developing software for the Internet of Things (IoT) comes with its own set of challenges. Security, privacy, and unified standards are a few key issues. In addition, each IoT product is comprised of (at least) three separate application components: the software embedded in the device, the back-end service, and the mobile application for the end user’s controls. Each component is developed by a different team, using different technologies and practices, and deployed to a different stack/target –...
SYS-CON Events announced today that Hitrons Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Hitrons Solutions Inc. is distributor in the North American market for unique products and services of small and medium-size businesses, including cloud services and solutions, SEO marketing platforms, and mobile applications.
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
Enterprises have forever faced challenges surrounding the sharing of their intellectual property. Emerging cloud adoption has made it more compelling for enterprises to digitize their content, making them available over a wide variety of devices across the Internet. In his session at 19th Cloud Expo, Santosh Ahuja, Director of Architecture at Impiger Technologies, will introduce various mechanisms provided by cloud service providers today to manage and share digital content in a secure manner....
As the world moves toward more DevOps and Microservices, application deployment to the cloud ought to become a lot simpler. The Microservices architecture, which is the basis of many new age distributed systems such as OpenStack, NetFlix and so on, is at the heart of Cloud Foundry - a complete developer-oriented Platform as a Service (PaaS) that is IaaS agnostic and supports vCloud, OpenStack and AWS. Serverless computing is revolutionizing computing. In his session at 19th Cloud Expo, Raghav...