Another Big Cannabis Capital Raise in Canada, with Organigram Announcing $17.5mm Deal

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Another day, another deal in Canada! In advance of legalization and facing a shortage of capacity to meet the potential demand in the future, the licensed producers (LPs) have been raising capital aggressively since the Trudeau election, with investor demand clearly exceeding the supply of new shares.  Aurora Cannabis (CSE: ACB) (OTC: ACBFF), Aphria (TSXV: APH) (OTC: APHQF), Canopy Growth (TSX: CGC) (OTC: TWMJF), Mettrum (TSXV: MT) (OTC: MQTRF) and Supreme Pharma (CSE: SL) (OTC:SPRWF) have all completed at least one equity sale in the past 9 months.

Today, on the heels of the $25mm Aphria deal announced last week and later increased to $30mm, Organigram (TSXV: OGI) (OTC: OGRMF) trading was halted near the close today in advance of a press release detailing a $17.5mm “bought deal” to sell shares to a syndicate of underwriters led by Dundee Securities.  13.47mm shares will be offered to the public at a price of $1.30, with the potential for the deal to be increased to over $20mm if the underwriters exercise their over-allotment option.  The financing is expected to close on or about August 24th, when Health Canada is expected to announce potential changes to the MMPR program.

Organigram raised over $10mm by selling units consisting of a share and a 1/2 warrant at $1.40) at $1.05 with  earlier this year.  The stock traded to a 52-week high earlier today before the announcement of the transaction.

Organigram OGI OGRMF 080316

For fact-based information on Organigram, view the company’s sponsored Investor Dashboard.

Published by NCV Newswire
NCV Newswire
The NCV Newswire by New Cannabis Ventures aims to curate high quality content and information about leading cannabis companies to help our readers filter out the noise and to stay on top of the most important cannabis business news. The NCV Newswire is hand-curated by an editor and not automated in anyway. Have a confidential news tip? Get in touch.

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