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OrganiGram to Purchase Adjoining 10 Acres and 136,000 sq ft Building
MONCTON, NEW BRUNSWICK–(Marketwired – Aug. 31, 2016) –
OrganiGram Holdings Inc. (TSXV: OGI) (OTC: OGRMF) (the “Company”) is pleased to announce it has entered into a purchase and sale agreement with Commercial Properties Limited to acquire the adjoining property to its current location in Moncton.
As previously disclosed, the Company required additional real estate to facilitate the aggressive expansion of its production potential in advance of pending recreational legalization. The purchase of this property, along with the recently closed financing of $23 million, position OrganiGram both financially and logistically for material growth in its cannabis production and processing capabilities.
“We’re very pleased to enter into this agreement with OrganiGram and we congratulate them on their rapid success to date,” said Paul Moore, Vice President and General Manager of Commercial Properties Limited. “This transaction will facilitate their growth and provide many new jobs here in Moncton. It’s always exciting to be able to support growth in the local business community.”
Under the terms of the transaction, OrganiGram will acquire the 10-acre property, which includes a 136,000 square foot industrial building for approximately $6.9 million in cash and other non-cash consideration, including real property, located at 1299 St. George Boulevard. OrganiGram anticipates the closing of the transaction to occur on or about September 30, 2016.
This month has been transformational for OrganiGram and is a demonstration of the Company’s disciplined approach to business development. With the closing of our bought deal financing last week, OrganiGram became financially positioned to expedite and execute our expansion strategy.
Denis Arsenault, CEO of OrganiGram
This property acquisition represents the next step in that process and enables us to achieve our expansion goals while maintaining the regulatory and operating benefits of being situated on one property. By adding this incremental acreage, OrganiGram more than triples our potential operating footprint, more than quadruples our potential production footprint, and provides the necessary flexibility for phased growth and development of our commercial scale extracts production and processing platform.
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 (“ACMPR”).
Original press release: http://www.marketwired.com/press-release/organigram-to-purchase-adjoining-10-acres-and-136000-sq-ft-building-tsx-venture-ogi-2154518.htm
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