Organigram Holdings (TSX.V: OGI) (OTCQX: OGRMF) recently announced that it will exercise its right to convert all the principal amount outstanding of the remaining debentures on April 1, 2019 into common shares of the company in accordance with the indenture governing the company’s 6 percent convertible unsecured debentures due January 31, 2020. The company believes this conversion will save roughly $4.9 million in cash interest payments that would have accumulated if the outstanding debentures were held to maturity. It will also remove a substantial liability from the company’s balance sheet. Per the terms of the indenture, when the volume weighted average trading price (“VWAP”) of the common shares on the TSX Venture Exchange exceeds $7.05 for 10 consecutive trading days, Organigram can force the conversion of the debentures at the conversion price of $5.42 each. This requirement was met on February 26 when the VWAP for a period of 10 days exceeded $7.05 at close of markets. The conversion is planned to be effective on or near April 1, 2019, at which time approximately $98,024,000 (face value) of debentures outstanding will be converted into roughly 18,085,608 common shares and accrued interest will be paid, less any required deductions or withholdings. Rather than issuing fractional common shares on the conversion, Organigram will make cash payments to holders in an amount equal to the fractional interest in accordance with the indenture.
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About Organigram Holdings Inc.
Organigram Holdings Inc. is a TSX Venture Exchange listed company whose wholly owned subsidiary, Organigram Inc., is a licensed producer of cannabis and cannabis-derived products in Canada. Organigram is focused on producing the highest-quality, indoor-grown cannabis for patients and adult recreational consumers in Canada, as well as developing international business partnerships to extend the company’s global footprint. Organigram has also developed a portfolio of legal adult use recreational cannabis brands including The Edison Cannabis Company, Ankr Organics, Trailer Park Buds and Trailblazer. Organigram’s primary facility is located in Moncton, New Brunswick and the company is regulated by the Cannabis Act and the Cannabis Regulations (Canada). For more information, visit the company’s website at www.Organigram.ca.
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