Organigram plans to increase marijuana production via CA$73 million raise

The largest producer of medical marijuana on Canada’s East Coast stated it signed three separate offers to safe roughly 73 million Canadian dollars ($57 million), with a lot of the funding going to increase its production capability.

Organigram stated in a information launch it sealed a stock-purchase deal to raise CA$57.5 million in capital. Eighty % of the proceeds can be used to increase its production capability for medical and leisure merchandise, together with edibles, oils and extracts.

When absolutely constructed out, Organigram’s amenities in New Brunswick could have an annual production capability of 65,000 kilograms (143,300 kilos).

Previously, the Moncton-based firm had deliberate to increase its production capability to 26,000 kilograms.

Organigram stated that 16,428,572 shares have been bought to a gaggle of underwriters at a worth of CA$three.50, producing complete proceeds of CA$57.5 million.

Each share consisted of 1 widespread share and half of a standard share buy warrant, entitling the holder to purchase one share at a worth of CA$four till June 18, 2019.

Separately, Organigram signed a deal for a CA$10 million mortgage from Farm Credit Canada.

In the identical information launch, the corporate stated it secured one other CA$5.three million in exercised warrants.

Organigram is traded on the TSX Venture Exchange underneath the image OGI.

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