- Organigram, one of Canada’s first cannabis stocks, is announcing an overnight marketed public offering of units for up to C$25 million
- The offering seeks to capitalize on a sector-wide bump in cannabis stocks after Germany’s passing of legislation to legalize recreational cannabis beginning April 1
- Organigram is a licensed producer of cannabis flower, edibles and other derived products for the Canadian recreational and medical markets
- Organigram stock has given back 17.15 per cent year-over-year, and has lost 92.08 per cent of its value over the past five years
Organigram (TSX:OGI), one of Canada’s first cannabis stocks, is announcing an overnight marketed public offering of units for up to C$25 million.
The company intends to use the net proceeds for growth initiatives and general corporate purposes.
ATB Securities will serve as lead underwriter, on behalf of itself and a syndicate of underwriters, for the sale of 7,740,000 units at a price of C$3.23 per unit. Each unit is composed of one Organigram common share and one half of one common share purchase warrant, while each warrant is exercisable to acquire one common share for C$3.65 for four years after the closing of the offering. The offering is expected to close on or about April 2, 2024.
An over-allotment option, exercisable in whole or in part, allows the underwriters to purchase up to an additional 1,161,000 units at the offering price for up to 30 days after the closing of the offering.
Potential investors can learn more about the offering by consulting the prospectus supplement to be filed with Canadian securities regulatory authorities on SEDAR and the U.S. Securities and Exchange Commission.
Capitalizing on a recent upswing in cannabis stocks
Organigram’s share offering coincides with a steep rise across cannabis stocks because of new legislation, passed by Germany’s parliament on March 22, that will legalize recreational cannabis country-wide as of April 1. Germany is the European Union’s largest economy and could take in more than US$5 billion in additional tax revenue per year from cannabis sales.
Key cannabis stocks closely monitored by Stockhouse readers have benefitted from the upward momentum:
- Tilray stock (TSX:TLRY) is up by 22.1 per cent since the landmark legislation
- Canopy Growth (TSX:WEED) has added 72.6 per cent
- MediPharm Labs (TSX:LABS) is up by 28.57 per cent
- Aurora Cannabis (TSX:ACB) is up by 15.55 per cent
- Finally, Delta 9 Cannabis (TSX:DN) has added 100 per cent
Investors interested in expanding their exposure to cannabis can consult Stockhouse’s Weekly Cannabis Report, published every Friday, for fresh insights on recent industry news.
About Organigram
Organigram is a licensed producer of cannabis flower, edibles and other derived products for the Canadian recreational and medical markets. Its brand portfolio includes Edison, Holy Mountain, Big Bag O’ Buds, SHRED, SHRED’ems, Monjour, Laurentian, Tremblant Cannabis and Trailblazer.
Organigram stock (TSX:OGI) gained more than 15 per cent after Germany announced its new legislation. The stock has since fallen by 21.92 per cent after Wednesday’s offering notice, trading at C$2.85 per share as of 12:13 pm ET. OGI shares have given back 17.15 per cent year-over-year, and have lost 92.08 per cent of their value over the past five years.
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