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
The Internet giants are fully embracing AI. All the services they offer to their customers are aimed at drawing a map of the world with the data they get. The AIs from these companies are used to build disruptive approaches that cannot be used by established enterprises, which are threatened by these disruptions. However, most leaders underestimate the effect this will have on their businesses. In his session at 21st Cloud Expo, Rene Buest, Director Market Research & Technology Evangelism at Ara...
Join us at Cloud Expo June 6-8 to find out how to securely connect your cloud app to any cloud or on-premises data source – without complex firewall changes. More users are demanding access to on-premises data from their cloud applications. It’s no longer a “nice-to-have” but an important differentiator that drives competitive advantages. It’s the new “must have” in the hybrid era. Users want capabilities that give them a unified view of the data to get closer to customers and grow business. The...
"We are a monitoring company. We work with Salesforce, BBC, and quite a few other big logos. We basically provide monitoring for them, structure for their cloud services and we fit into the DevOps world" explained David Gildeh, Co-founder and CEO of Outlyer, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
The current age of digital transformation means that IT organizations must adapt their toolset to cover all digital experiences, beyond just the end users’. Today’s businesses can no longer focus solely on the digital interactions they manage with employees or customers; they must now contend with non-traditional factors. Whether it's the power of brand to make or break a company, the need to monitor across all locations 24/7, or the ability to proactively resolve issues, companies must adapt to...
"Loom is applying artificial intelligence and machine learning into the entire log analysis process, from start to finish and at the end you will get a human touch,” explained Sabo Taylor Diab, Vice President, Marketing at Loom Systems, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
After more than five years of DevOps, definitions are evolving, boundaries are expanding, ‘unicorns’ are no longer rare, enterprises are on board, and pundits are moving on. Can we now look at an evolution of DevOps? Should we? Is the foundation of DevOps ‘done’, or is there still too much left to do? What is mature, and what is still missing? What does the next 5 years of DevOps look like? In this Power Panel at DevOps Summit, moderated by DevOps Summit Conference Chair Andi Mann, panelists loo...
"Tintri focuses on the Ops side of the DevOps, which basically is pushing more and more of the accessibility of the infrastructure to the developers and trying to get behind the scenes," explained Dhiraj Sehgal of Tintri in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
@DevOpsSummit at Cloud Expo taking place Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center, Santa Clara, CA, is co-located with the 21st International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is ...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
In the world of DevOps there are ‘known good practices’ – aka ‘patterns’ – and ‘known bad practices’ – aka ‘anti-patterns.' Many of these patterns and anti-patterns have been developed from real world experience, especially by the early adopters of DevOps theory; but many are more feasible in theory than in practice, especially for more recent entrants to the DevOps scene. In this power panel at @DevOpsSummit at 18th Cloud Expo, moderated by DevOps Conference Chair Andi Mann, panelists discussed...
A look across the tech landscape at the disruptive technologies that are increasing in prominence and speculate as to which will be most impactful for communications – namely, AI and Cloud Computing. In his session at 20th Cloud Expo, Curtis Peterson, VP of Operations at RingCentral, highlighted the current challenges of these transformative technologies and shared strategies for preparing your organization for these changes. This “view from the top” outlined the latest trends and developments i...
The current age of digital transformation means that IT organizations must adapt their toolset to cover all digital experiences, beyond just the end users’. Today’s businesses can no longer focus solely on the digital interactions they manage with employees or customers; they must now contend with non-traditional factors. Whether it's the power of brand to make or break a company, the need to monitor across all locations 24/7, or the ability to proactively resolve issues, companies must adapt to...
"We focus on composable infrastructure. Composable infrastructure has been named by companies like Gartner as the evolution of the IT infrastructure where everything is now driven by software," explained Bruno Andrade, CEO and Founder of HTBase, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Hardware virtualization and cloud computing allowed us to increase resource utilization and increase our flexibility to respond to business demand. Docker Containers are the next quantum leap - Are they?! Databases always represented an additional set of challenges unique to running workloads requiring a maximum of I/O, network, CPU resources combined with data locality.
For organizations that have amassed large sums of software complexity, taking a microservices approach is the first step toward DevOps and continuous improvement / development. Integrating system-level analysis with microservices makes it easier to change and add functionality to applications at any time without the increase of risk. Before you start big transformation projects or a cloud migration, make sure these changes won’t take down your entire organization.