OrganiGram to Raise $35MM from Stock Sale

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One of the biggest stories in the cannabis industry this year has been the massive amount of capital raised by licensed producers in Canada. Already OrganiGram (TSXV: OGI) (OTC: OGRMF) had raised over $33mm in two offerings earlier this year. This morning, the company announced a $35mm “bought deal” to be underwritten by Dundee Securities, which yesterday boosted its target price on the stock from $2.00 to $4.00. OGI closed at a record high of $3.99, up over 20X from the all-time low set last October:


Dundee Securities has agreed to purchase 9.86mm shares for resale, but it has an option to purchase an additional 1.479mm shares within 30 days of the deal’s close. With the exercise of the over-allotment option, the size of the deal would be $40.253mm. The deal, which is expected to close by December 7th, will fund capital expenditures, working capital and general corporate purposes.

With the closing of three recently announced deals, including the OrganiGram raise and pending offerings by Aphria and Supreme Pharma, the publicly-traded LPs will have raised almost $400mm since the Liberal Party took control of the government last October, including $351.7mm in 2016.


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

Exclusive article by Alan Brochstein, CFA
Alan Brochstein, CFA
Based in Houston, Alan leverages his experience as founder of online community 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | Email

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