Organigram Update on Proposed Investment

Organigram Update on Proposed Investment in European CBD Hemp Producer Eviana

The information is meant to upgrade and replace the information.

Organigram has signed a term sheet to take part as to 50% in a private placement debenture offering (the”Debenture Offering”) by Eviana comprised of 10,000 debenture units (the”Debenture Units”) of Eviana, each consisting of: (I) $1,000 principal amount of senior unsecured convertible debentures of Eviana (the”Debenture”) and (ii) one half of one common share (the”Common Shares”) purchase warrant of the Company (each whole purchase warrant, a”Warrant”).  The balance of the Debenture Offering is proposed to be obtained through an institutional strategic investor (the”Strategic Investor”).

Each complete Warrant shall be exercisable by the holder thereof for 870 Common Shares in the capital of Eviana at an exercise price per Warrant Share of $1.30 for a period of 24 months from the closing date of the Debenture Offering. The Debentures will be convertible at a conversion price of $1.15 per Common Share at the holder’s option, or upon mandatory conversion at the request of Eviana in the event that at any time after four weeks plus one day after the Closing, for any ten consecutive trading days, the daily volume weighted average closing price of the Common Shares on the CSE is greater than $2.15.

The Debentures shall bear interest at a rate of 10% per annum from the date of issue, payable semi-annually in arrears on June 30 and December 31 of every year, commencing December 31, 2018.

The Debenture Offering is expected to be completed on or about or such earlier or later date as Eviana, Organigram and the Strategic Investor may determine.

Eviana is a publicly listed company that was established with the aim of delivering customized consumer healthcare products using natural hemp strains of cannabis sativa for goods and creams and nutraceutical and cosmeceutical merchandise.

On September 7, 2018 Eviana provided a corporate upgrade which the Serbian operations which it can purchase under an option agreement had begun commercial production of cannabidiol (“CBD”) utilizing Vitalis Supercritical CO2 extraction.  Aside from the extraction facility that the Serbian operations own approximately 60 tonnes of dried hemp prepared for extraction and sorting in addition to a 2018 crop of 250 hectares expected to yield as much as an additional 250 tonnes of dried hemp for extraction and sorting.

Eviana’s common shares trade on the Canadian Securities Exchange (CSE) under the symbol EHC and closed at a price of $1.49 on September 13, 2018.

Board Representation

On closing of the Debenture Offering, Organigram shall be granted board representation rights, pursuant to which Eviana will agree to include one Organigram designated candidate for election to the board of directors of the business and to solicit support for such candidate in all shareholder meetings at which directors are to be elected.

Offtake Sales Agreement

Organigram shall have the right, but not the obligation, to purchase up to and including 25 percent (the”Offtake Percentage”) of Eviana’s (on a consolidated basis) annual CBD oil (or a similar form including, but not limited to, CBD crystals) in 95% of the agreed raw CBD petroleum (or equivalent thereof) wholesale market price for a period of 5 years from the date on which the CBD petroleum (or equivalent thereof) is first made commercially available by Eviana for wholesale (subject to final agreement on terms between management of both companies).

Around Organigram Holdings Inc. 

Organigram Holdings Inc. is a TSX Venture Exchange listed company whose wholly owned subsidiary, Organigram Inc., is a licensed producer of cannabis and cannabis-derived goods in Canada. 

Organigram is focused on developing business partnerships to extend the provider’s global footprint, in addition to creating adult consumers in Canada and the indoor-grown cannabis for patients. In anticipation of the authorized adult use recreational cannabis in Canada, Organigram has developed a portfolio of brands including Ankr Organics The Edison Cannabis Company and Trailer Park Buds. Organigram’s primary facility is located in Moncton, New Brunswick and the organization is regulated by the Access to Cannabis for Medical Purposes Regulations (“ACMPR”). 

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains forward-looking information which involves known and unknown risks, uncertainties and other factors that may cause actual events to differ materially from current expectations. Important factors – including the availability of funds, consummation of definitive documentation, the results of financing efforts, crop yields – which could cause actual results to differ materially from the Company’s expectations are disclosed in the Company’s documents filed from time to time on SEDAR (see www.sedar.com). Readers are cautioned not to put undue reliance on these forward-looking statements, which speak only as of the date of this press release.

For more information on Organigram please see: www.Organigram.ca

SOURCE

Released at Fri, 14 Sep 2018 14:57:04 +0000

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