The largest producer of medical marijuana on Canada’s East Coast said it signed three separate deals to secure roughly 73 million Canadian dollars ($57 million), with much of the funding going to boost its production capacity.
Organigram said in a news release it sealed a stock-purchase deal to raise CA$57.5 million in capital. Eighty percent of the proceeds will be used to boost its production capacity for medical and recreational products, including edibles, oils and extracts.
Previously, the Moncton-based company had planned to boost its production capacity to 26,000 kilograms.
Organigram said that 16,428,572 shares were sold to a group of underwriters at a price of CA$3.50, generating total proceeds of CA$57.5 million.
Each share consisted of one common share and half of a common share purchase warrant, entitling the holder to acquire one share at a price of CA$4 until June 18, 2019.
Separately, Organigram signed a deal for a CA$10 million loan from Farm Credit Canada.
In the same news release, the company said it secured another CA$5.3 million in exercised warrants.
Organigram is traded on the TSX Venture Exchange under the symbol OGI.
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