MONCTON, NEW BRUNSWICK--(Marketwired - Dec. 7, 2016) - OrganiGram Holdings Inc. (TSX
VENTURE:OGI)(OTCQB:OGRMF) ("OrganiGram" or the "Company") is pleased to announce that it has closed its previously
announced short form prospectus offering, on a bought deal basis, including the full exercise of the over-allotment option. As
such, a total of 11,339,000 common shares of the Company (the "Shares") were sold at a price of $3.55 per Share, for aggregate
gross proceeds of $40,253,450 (the "Offering"). The Offering was completed by a syndicate of underwriters led by Dundee
Securities Ltd., and including GMP Securities L.P., Mackie Research Capital Corporation, PI Financial Corp. and Cormark
Securities Inc.
The Company intends to apply approximately 60% of the net proceeds from the Offering towards the build out and construction of
an extension to its existing facility located at 35 English Drive in Moncton (the "35 English Drive Expansion"). The Company
anticipates that the 35 English Drive Expansion will add 32,000 square feet of additional grow room area and significantly
increase the Company's cannabis production capacity by between 12,000 to 14,000 kilograms of flower per year. This portion
of the net proceeds of the Offering will also enable the Company to continue with its current expansion and to supplement its
planned 15,000 square foot cannabis extracts and derivatives facility which is being designed to maximize utilization of plant
production and cannabis oil extraction in anticipation of the expected growth in demand for cannabis oil extracts and related
products. The Company intends to apply the remainder of the net proceeds of the Offering to future expansion possibilities,
to working capital and to general corporate purposes.
The Shares were offered and sold by way of a short form prospectus filed in each of the provinces of Canada, excluding the
province of Québec.
The Shares have not been, nor will they be, registered under the United States Securities Act of 1933, as amended (the "1933
Act"), and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S.
registration or an applicable exemption from the U.S. registration requirements. This news release does not constitute an
offer for sale of securities, nor a solicitation for offers to buy any securities. Any public offering of securities in the
United States must be made by means of a prospectus containing detailed information about the company and management, as well as
financial statements. "United States" and "U.S. person" are as defined in Regulation S under the 1933 Act
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 (the "ACMPR").
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking information, including but not limited to the intended use of proceeds of the
Offering, 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
final short form prospectus dated November 29, 2016 filed in connection with the Offering, the Company's annual information form,
management's discussion and analysis and other 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.