OrganiGram Holdings Inc T.OGI

Candy factory deal with AGRA

[7Twiggy]

Key Transaction Terms

The gross purchase price receivable by AgraFlora and the other shareholders on closing of the EIC Transaction is $22 million, receivable in full by the issuance of 5,045,872 common shares of OGI based on its closing price of $4.36 on April 5, 2021. Upon satisfaction of the Milestones, OGI will issue up to an aggregate of an additional $13 million of its common shares proportionately to AgraFlora and the other shareholders, for which the number of common shares will be determined upon achievement of each Milestone. The Milestones include:

1. $3.5 million to be received in common shares of OGI on first listing prior to December 31, 2021 in either the Ontario or Alberta recreational market of EIC or Organigram branded product (which was manufactured at the EIC facility);
2. $7.0 million to be received in common shares of OGI on the successful completion of $15 million in net revenue during the 12 months ended December 31, 2022;
3. $2.5 million to be received in common shares of OGI on the generation of $7 million in Adjusted EBITDA for the 12 months ended December 31, 2022.

The purchaser is an arm’s length party to AgraFlora. The EIC Transaction has been approved by AgraFlora’s Board of Directors. Milestone payments to be received in common shares of OGI shall be priced at the closing price on the Toronto Stock Exchange (“TSX”) on the day prior to settlement. The EIC Transaction has received approval from the TSX and has also received customary conditions and approvals from OGI’s senior lenders.

[jerrytuts]

if we can get some stock price upgrades along with USA momentum with Schumer introducing the bill tomorrow, might get a little run going!