By Marijuanaindex.com

MONCTON, NEW BRUNSWICK–(Marketwired – Dec. 7, 2016) – OrganiGram Holdings Inc. (TSX VENTURE:OGI)(OTCQB:OGRMF) (“OrganiGram” or the “Company”) is pleased to announce that it has closed its previously announced short form prospectus offering, on a bought deal basis, including the full exercise of the over-allotment option. As such, a total of 11,339,000 common shares of the Company (the “Shares”) were sold at a price of $3.55 per Share, for aggregate gross proceeds of $40,253,450 (the “Offering”). The Offering was completed by a syndicate of underwriters led by Dundee Securities Ltd., and including GMP Securities L.P., Mackie Research Capital Corporation, PI Financial Corp. and Cormark Securities Inc.

The Company intends to apply approximately 60% of the net proceeds from the Offering towards the build out and construction of an extension to its existing facility located at 35 English Drive in Moncton (the “35 English Drive Expansion”). The Company anticipates that the 35 English Drive Expansion will add 32,000 square feet of additional grow room area and significantly increase the Company’s cannabis production capacity by between 12,000 to 14,000 kilograms of flower per year. This portion of the net proceeds of the Offering will also enable the Company to continue with its current expansion and to supplement its planned 15,000 square foot cannabis extracts and derivatives facility which is being designed to maximize utilization of plant production and cannabis oil extraction in anticipation of the expected growth in demand for cannabis oil extracts and related products. The Company intends to apply the remainder of the net proceeds of the Offering to future expansion possibilities, to working capital and to general corporate purposes.

The Shares were offered and sold by way of a short form prospectus filed in each of the provinces of Canada, excluding the province of Québec.

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