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North Carolina-based Open Book Extracts is a leading ingredient provider, product formulator, and manufacturer of hemp-derived extracts and products.
Toronto, March 26, 2024–(BUSINESS WIRE)–Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI) (the “Company” or “Organigram”) is a Steady State LLC (d/ b/a Open Book Extracts) (“OBX ) in the form of convertible bonds.
Based in Roxboro, within North Carolina’s “Research Triangle,” OBX specializes in producing legal cannabinoid ingredients and serves as a one-stop compounding and finished product manufacturer, simplifying supply chains for customers. .
“We are thrilled to make our first Jupiter Pool investment in Open Book Extract, a company we have been eyeing for some time,” said Paolo De Luca, Chief Strategy Officer at OrganiGram. I’m excited about it.” “OBX has a scalable platform, differentiated products, and a great team, all of which support our tremendous access to the U.S. market and leadership in the fast-growing hemp derivatives category,” he concluded. Ta.
“OrganiGram has consistently proven itself to be one of Canada’s leading licensed cannabis producers, and is recognized internationally as one of Canada’s leading licensed cannabis producers,” said David Neundorfer, co-founder and CEO of OBX. We are eager to welcome them as investors in OBX as their ambitions expand.” “We are pleased to receive this investment from OrganiGram, which shares our commitment to maintaining the highest standards of product quality. ” added co-owner Oscar Hackett. Founder, President, CFO.
Strategic rationale for investment
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The investment in OBX provides additional footprint in the United States, a strategic priority set out in Jupiter’s investment strategy.
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OBX is a quality-driven, professional and rapidly growing company that is uniquely positioned to take advantage of the expanding legal hemp derivatives market.
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Organigram’s investment in OBX provides valuable insight into the U.S. market and its consumers. In due course, OrganiGram plans to work with OBX to explore the possibility of launching the product in the United States.
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OBX and OrganiGram are currently discussing opportunities for OBX to serve as a collaborative research partner for efficacy testing, technology development, and formulation science.
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OBX is nearing completion of EU GMP certification, which creates further international cooperation opportunities between OBX and Organigram.
Select convertible notebook details
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OrganiGram’s USD 2 million subordinated convertible note instrument (the “Note”) is part of a larger financing round totaling approximately USD 15 million. Recent investors include funds managed by KEY Investment Partners and Lago Innovation Fund. OBX’s existing investors include BT DE Investments Inc., a subsidiary of British American Tobacco plc. (Bat).
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The notes will mature on October 16, 2026, unless previously converted into OBX stock.
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If OBX completes an equity raise of at least US$5 million in the future, the notes will be converted into equity at a 20% discount from the price of that financing round, subject to certain conditions.
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The Notes are secured by a general security charge on the assets of OBX and are subordinated to only one security holder.
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Funds will be used for general corporate purposes.
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As part of the convertible note subscription, Organigram will be granted one observer seat on the OBX Board of Directors.
About Organigram Holdings Co., Ltd.
Organigram Holdings Inc. is a NASDAQ Global Select Market and TSX listed company whose wholly owned subsidiaries include Organigram Inc., a licensed producer of cannabis, cannabis-derived products and cannabis-infused edibles in Canada.
OrganiGram is focused on producing high-quality cannabis for patients and adult recreational consumers and developing international business partnerships to expand the company’s global footprint. Organigram also developed and acquired a portfolio of adult recreational cannabis brands including Edison, Holy Mountain, Big Bag O’ Buds, SHRED, SHRED’ems, Monjour, Laurentian, Tremblant Cannabis, and Trailblazer. OrganiGram operates facilities in Moncton, New Brunswick and Lac-Superieure, Quebec, and has an edible-only manufacturing facility in Winnipeg, Manitoba. We are regulated by the Cannabis Act and the Cannabis Regulations (Canada).
About open book excerpts
Headquartered in Roxboro, North Carolina, Open Book Extracts is an NSF cGMP and ISO 9001 certified manufacturer of premium hemp-based cannabinoid products, leading the industry by providing premium products, exceptional service, and industry-leading transparency. We are aiming due north. With a state-of-the-art extraction campus located near North Carolina’s Research Triangle, proprietary purification and transformation methods backed by a growing portfolio of intellectual property, and a team of experienced scientists and experienced business leaders, his OBX , enter the market.
For more information, please visit https://openbookextracts.com.
Forward-looking information
This news release contains forward-looking information. Forward-looking information often, but not always, includes words such as “plans,” “expects,” “estimates,” “intends,” “anticipates,” “believes” or similar words or phrases. can be identified by the use of variations of . or that a particular action, event, or result is “possible,” “could,” “will,” “likely,” or “taken” or “achieved.” to state. Forward-looking information is subject to known and unknown risks and uncertainties, including that Organigram’s actual results, events, performance or achievements may differ from current expectations or future results expressed or implied by the included forward-looking information. , and other factors that may cause our results to differ materially. In this news release. Risks, uncertainties and other factors associated with forward-looking information may cause actual events, results, performance, prospects and opportunities to be different from those expressed by forward-looking information, including changes in market, legal and regulatory conditions and factors. or may differ materially from that implied. Our most recent annual information form, management’s discussion and analysis, and other corporate documents filed from time to time on SEDAR (see www.sedar.com) and filed with or furnished to the Securities and Exchange Commission on EDGAR. Risks and risks disclosed in other company documents (see www.sec.gov). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information and No guarantee can be given that such an event will occur or that such an event will occur. not at all. The forward-looking information contained in this news release is made as of the date of this news release, and the Company disclaims any intention or obligation to update or revise any forward-looking information, except to the extent required by law. I deny it. new information, future events or other results;
View source version on businesswire.com. https://www.businesswire.com/news/home/20240326681362/ja/
contact address
Media inquiries:
Megan McRae
Senior Vice President, Global Brands and Corporate Affairs
megan.mccrae@organigram.ca
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Investor inquiries:
max schwartz
Director of Investor Relations
max.schwartz@organigram.ca
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