Organigram Announces $55 Million At-The-Market Offering

It appears at-the-market offerings have become all the rage in a cannabis sector desperately vying for any capital to keep operations going. Organigram Holdings (TSX: OGI) (NASDAQ: OGI) is the latest such firm to announce such an offering, following closely in Cresco Labs’ (CSE: CL) footsteps, whom announced a similar offering yesterday. Organigram’s offering, similar to that of Cresco’s, is for a total of C$55.0 million. The offering will see the issuer sell common stock from the treasury directly to the public markets as a means of sourcing additional funds.

The offering itself is being conducted through that of the Bank of Montreal. Due to the offering being conducted on both the Nasdaq and the Toronto Stock Exchange, Canadian sales will be conducted through BMO Nesbitt Burns, while US sales will take place through BMO Capital Markets.

Organigram Holdings has until December 25, 2021 to complete the financing, with the sale of common shares being at the discretion of management. The financing will be viewed as completed at the earlier of this date, or upon C$55.0 million being raised through the ATM offering.

Organigram filed its fourth quarter results early last week, reporting the second straight quarter of declining revenues. Revenues came in at $16.2 million, while the firm reported a cash position of $47.5 million.

Organigram Holdings last traded at $2.69 on the Nasdaq.

Information for this briefing was found via Sedar and Organigram Holdings. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.