Organigram Enters into LOI to Acquire Trauma Healing Centers
MONCTON, NEW BRUNSWICK–(Marketwired – April 10, 2017) – Organigram Holdings Inc. – (TSX VENTURE:OGI)(OTCQB:OGRMF) (“Organigram” or the “Company”) is pleased to announce that it has entered into a letter of intent (the “LOI”) to acquire (the “Transaction”) all of the issued and outstanding shares of Trauma Healing Centers Incorporated (“THC”).
Organigram and THC have enjoyed a close working relationship over the past two years, and we have great mutual respect for each other’s business. THC’s commitment to client care, specifically within the veteran community, is aligned with our client care commitment as part of our Canada’s Safest Cannabis initiatives.
Greg Engel, CEO of Organigram
We also believe this arrangement allows both companies the resources to scale up and achieve our future expansion plans.
Trauma Healing Centers, which is celebrating its second anniversary, specializes in medical cannabis assessment and prescribing. THC sees patients on a referral basis and offers a multi-disciplinary approach to healing chronic conditions. Trauma Healing Centers is the only organization to boast a multi-disciplinary designation with Blue Cross for military and RCMP veteran clients. THC currently services over 3,500 patients across seven Canadian locations with plans to open seven more locations.
The Transaction will result in THC joining the Organigram group thereby consolidating two leading medicinal cannabis players within the industry. THC will continue to operate independently by providing referrals based on client need to any licensed producer in Canada.
“We are pleased to be joining the Organigram family,” stated Kyle Atkinson, President of Trauma Healing Centers. “They have established themselves as a leading medical cannabis producer in Canada and we look forward to a long, rewarding relationship.”
Under the terms of the LOI, the purchase consideration consists of the issuance of 719,425 common shares of Organigram at a deemed value of $2.78 per share.
The closing of the Transaction is subject to customary closing conditions, including execution of definitive documentation, completion of satisfactory due diligence and receipt of applicable third party and regulatory approvals, including that of the TSX Venture Exchange.
For more information about Trauma Healing Centers visit www.traumahc.com.
For more information visit www.organigram.ca.
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 medical marijuana in Canada. Organigram is focused on producing the highest quality, condition specific medical marijuana for patients in Canada. Organigram’s facility is located in Moncton, New Brunswick and the Company is regulated by the Access to Cannabis for Medical Purposes Regulations (“ACMPR”).
Before this cannabis stock news is here, it’s published to subscribers on 420 Investor.