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.
When fully built out, Organigram’s facilities in New Brunswick will have an annual production capacity of 65,000 kilograms (143,300 pounds).
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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