As predicted, Organigram Holdings (TSX: OGI) (NASDAQ: OGI) has already completed its at-the-market equity program announced back in April. Despite stating that the program was valid for a period of nearly two years, the program has been completed in just two months – indicating the company likely continues to churn through cash.
Initially announced of April 22, the funding was for gross proceeds of $49.0 million. Initially scheduled to expire December 25, 2021, we highlighted at the time of announcement that it was likely to be fully used in short order due to compliance issues related to certain debt covenants.
In total, 21,080,229 common shares of the company were dumped on to investors directly via the public markets as the company looks to raise funds to cover capital projects, repay debts, and for general corporate purposes.
Furthermore, the company also announced that it is having some trouble surrounding its Trailer Park Boys branded cannabis with Health Canada. Although specifics were not provided, the company is “making some changes to its newly launched brand and logo” while “exploring options for a permanent logo and brand name combination for its large format value brand.” The wording of the text suggests it will be dropping the collaboration.
Finally, the company also identified that it was named in a class action lawsuit filed in Alberta seeking damages from many of Canada’s largest cannabis companies. Further details were not provided.
Organigram Holdings last traded at $1.86 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.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.