TORONTO - Organigram Holdings Inc. (TSX: OGI; NASDAQ: OGI), a licensed producer of cannabis and cannabis-derived products, announced an overnight marketed public offering of units aiming to raise approximately C$25 million. The offering, conducted through ATB Securities Inc. as the lead underwriter alongside a syndicate, involves selling 7,740,000 units at C$3.23 each.
The company also offered an over-allotment option for underwriters to purchase up to an additional 1,161,000 units at the same price for 30 days post-closing, to manage market stabilization and potential over-allotments.
Each unit in the offering consists of one common share and half of one common share purchase warrant. The warrants are exercisable for one common share at C$3.65 each over a four-year period after the closing date, with adjustments possible under certain conditions.
The closing of the offering is anticipated around April 2, 2024, subject to standard market and other conditions, including approvals from the Toronto Stock Exchange and NASDAQ's notification rules. Organigram intends to use the net proceeds to finance growth initiatives and for general corporate purposes.
Prospective investors will find details in the prospectus supplement, which supplements the base shelf prospectus from October 6, 2023, and is filed with Canadian securities commissions and the United States Securities and Exchange Commission (SEC). These documents contain essential information about the offering and are accessible through the SEDAR+ and EDGAR platforms.
Organigram, with facilities in Moncton, New Brunswick (NYSE:BC), Lac-Supérieur, Quebec, and a dedicated edibles manufacturing facility in Winnipeg, Manitoba, focuses on high-quality cannabis production for medical and adult recreational use. The company's portfolio includes a range of legal adult-use recreational cannabis brands.
This news release is based on a press release statement and contains forward-looking information. The completion and details of the offering are subject to change based on market conditions and regulatory approvals. Investors should not place undue reliance on forward-looking statements as they involve risks and uncertainties that could cause actual events to differ materially from those projected.
InvestingPro Insights
As Organigram Holdings Inc. (TSX: OGI; NASDAQ: OGI) navigates the market with its recent public offering, investors are keenly observing the company's financial health and market performance. According to real-time data from InvestingPro, Organigram's market cap stands at 253.35 million USD. Despite the challenges in profitability, the company has shown a significant return over the last week of 10.74%, with an even more impressive three-month price total return of 98.52%. This uptrend is reflected in the six-month price total return, hitting a remarkable 100%.
InvestingPro Tips highlight that Organigram is currently facing some headwinds, as analysts have revised their earnings downwards for the upcoming period, and they do not expect the company to be profitable this year. Nonetheless, the company's liquid assets exceed its short-term obligations, which may provide some financial flexibility in the near term.
For investors looking to dive deeper into Organigram's financials and future outlook, there are additional InvestingPro Tips available at https://www.investing.com/pro/OGI. With these insights, you can make more informed decisions on whether Organigram fits into your investment strategy. Remember to use the coupon code PRONEWS24 to get an extra 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking even more valuable tips and metrics. There are 9 additional InvestingPro Tips waiting to guide your investment journey.
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