Canadian cannabis company Orgranigram to offer C$60 million units in syndicated deal

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Organigram Holdings Inc. said Tuesday it is offering C$60 million ($46 million) of units in a syndicated deal led by Canaccord. The Canadian cannabis company said each unit will be priced at C$1.85 and will be comprised of one share plus one half of one common share purchase warrant. Warrants will be exercisable to acquire one common shares for up to three years following the closing date at an exercise price of C$2.50 per warrant share. The underwriters have been granted a 30-day option to acquire an additional 15% of the units offered under the same terms. Proceeds of the deal will be used to repay debt and for working capital and general corporate purposes. Organigram joins the many companies raising record amounts of capital during the pandemic. U.S.-listed shares were down 11% premarket and have fallen 35% in the year to date, while the Cannabis ETF has fallen 9.6% and the S&P 500 has gained 10%.
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