MONCTON, NEW BRUNSWICK--(Marketwired - Aug. 31, 2016) -
Editors Note: There is a photo associated with this press release.
OrganiGram Holdings Inc. (TSX VENTURE:OGI)(OTCQB:OGRMF) (the "Company") is pleased to announce it has entered into a purchase and sale agreement with Commercial Properties Limited to acquire the adjoining property to its current location in Moncton.
As previously disclosed, the Company required additional real estate to facilitate the aggressive expansion of its production potential in advance of pending recreational legalization. The purchase of this property, along with the recently closed financing of $23 million, position OrganiGram both financially and logistically for material growth in its cannabis production and processing capabilities.
"We're very pleased to enter into this agreement with OrganiGram and we congratulate them on their rapid success to date," said Paul Moore, Vice President and General Manager of Commercial Properties Limited. "This transaction will facilitate their growth and provide many new jobs here in Moncton. It's always exciting to be able to support growth in the local business community."
Under the terms of the transaction, OrganiGram will acquire the 10-acre property, which includes a 136,000 square foot industrial building for approximately $6.9 million in cash and other non-cash consideration, including real property, located at 1299 St. George Boulevard. OrganiGram anticipates the closing of the transaction to occur on or about September 30, 2016.
"This month has been transformational for OrganiGram and is a demonstration of the Company's disciplined approach to business development. With the closing of our bought deal financing last week, OrganiGram became financially positioned to expedite and execute our expansion strategy. This property acquisition represents the next step in that process and enables us to achieve our expansion goals while maintaining the regulatory and operating benefits of being situated on one property. By adding this incremental acreage, OrganiGram more than triples our potential operating footprint, more than quadruples our potential production footprint, and provides the necessary flexibility for phased growth and development of our commercial scale extracts production and processing platform," says Denis Arsenault, CEO of OrganiGram.
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").
On behalf of the board of directors, Denis Arsenault, Director and CEO, OrganiGram Holdings Inc.
The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.
This news release contains forward-looking information which involves known and unknown risks, uncertainties and other factors that may cause actual events to differ materially from current expectation. Important factors - including the availability of funds, the results of financing efforts, crop yields - that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time on SEDAR (see www.sedar.com). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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