OrganiGram Holdings Inc.
TSX VENTURE : OGI
OTCQX : OGRMF

OrganiGram Holdings Inc.

September 10, 2015 18:07 ET

OrganiGram Announces Closing of Previously Announced Non-Brokered $3,000,000 Financing

MONCTON, NEW BRUNSWICK--(Marketwired - Sept. 10, 2015) - OrganiGram Holdings Inc. (TSX VENTURE:OGI)(OTCQX:OGRMF) (the "Company") is pleased to announce the closing of its previously announced non-brokered $3,000,000 financing (the "Financing").

The first $1,000,000 of the Financing has been received from Duce Holdings, LLC ("Duce") and Denaco Group Ltd., a corporation in which Denis Arsenault, the Chief Executive Officer of the Company, is a director ("Denaco"). In exchange, Duce and Denaco have been issued subordinated secured debentures (the "Debentures") and 200,000 common share purchase warrants of the Company (the "Warrants").

The Debentures shall bear interest at 9% per annum and shall mature on September 1, 2017; the Debentures are secured with a subordinated charge over all of the Company's assets. The Debentures may be converted into common shares of the Company in certain limited circumstances. Each whole Warrant entitles the holder thereof to purchase one common share of the Company for $0.45 (subject to TSX-V pricing guidelines). The Warrants shall not be exercisable before 12 months after the Closing Date and shall expire on June 15, 2017.

Neither the Debentures nor the Warrants are transferable, and any shares issued in connection with the exercise of Warrants or conversion of the Debentures, if any, will be subject to a four month hold period expiring on January 1, 2016, in accordance with the policies of the TSX Venture Exchange and applicable securities laws.

The Company also received $2,000,000 from Farm Credit Canada in the form of a secured long term loan facility, with an initial advancement of $1,000,000 on August 31, 2015 and the remaining $1,000,000 to be received by the Company in tiered disbursements.

"As I have mentioned before, this funding represents a sign of ongoing success for the company and the leadership of our management team," said Roger Rogers, President and CFO. "This funding permits us to grow that success through our operations and facility in Moncton, which in turn boosts our ability to offer quality medical products to our clients. This begins Q1 of our new fiscal year, which began on September 1st, 2015, on a high note and I look forward to OrganiGram's continued success."

The proceeds from the Financing have already begun to be put towards working capital purposes and for the expansion of the Company's facility located in Moncton, New Brunswick. No finder's fees or brokerage fees were payable in connection with the Financing.

The Financing is subject to the final approval of the TSX Venture Exchange. All securities issued will be subject to a hold period pursuant to applicable securities law.

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