#Cannabis Stock News: Organigram (TSX
VENTURE: $OGI) (OTCQB: $OGRMF) Enters into LOI to Acquire Trauma Healing
Centers
MONCTON, NEW BRUNSWICK - April 10, 2017 (Investorideas.com
Newswire) Organigram Holdings Inc. (TSX VENTURE:OGI) (OTCQB:OGRMF)
("Organigram" or the "Company") is pleased to announce that
it has entered into a letter of intent (the "LOI") to acquire (the
"Transaction") all of the issued and outstanding shares of Trauma
Healing Centers Incorporated ("THC").
"Organigram and THC have enjoyed a close working
relationship over the past two years, and we have great mutual respect for each
other's business," said Greg Engel, CEO of Organigram. "THC's
commitment to client care, specifically within the veteran community, is
aligned with our client care commitment as part of our Canada's Safest Cannabis
initiatives," added Engel. "We also believe this arrangement allows
both companies the resources to scale up and achieve our future expansion
plans."
Trauma Healing Centers, which is celebrating its second
anniversary, specializes in medical cannabis assessment and prescribing. THC
sees patients on a referral basis and offers a multi-disciplinary approach to
healing chronic conditions. Trauma Healing Centers is the only organization to
boast a multi-disciplinary designation with Blue Cross for military and RCMP
veteran clients. THC currently services over 3,500 patients across seven
Canadian locations with plans to open seven more locations.
The Transaction will result in THC joining the Organigram group thereby
consolidating two leading medicinal cannabis players within the industry. THC
will continue to operate independently by providing referrals based on client
need to any licensed producer in Canada.
"We are pleased to be joining the Organigram family,"
stated Kyle Atkinson, President of Trauma Healing Centers. "They have
established themselves as a leading medical cannabis producer in Canada and we
look forward to a long, rewarding relationship."
Under the terms of the LOI, the purchase consideration consists
of the issuance of 719,425 common shares of Organigram at a deemed value of
$2.78 per share.
The closing of the Transaction is subject to customary closing
conditions, including execution of definitive documentation, completion of
satisfactory due diligence and receipt of applicable third party and regulatory
approvals, including that of the TSX Venture Exchange.
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").
In February 2017, Organigram was ranked in the top ten Clean
Technology & Life Sciences Sector on the TSX Venture Exchange 50.
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 expectation. Important
factors - including the availability of funds, the results of financing
efforts, crop yields - that 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
place undue reliance on these forward-looking statements, which speak only as
of the date of this press release. The Company disclaims any intention or
obligation, except to the extent required by law, to update or revise any
forward-looking statements, whether as a result of new information, future events
or otherwise.
Contact
Information
Organigram Holdings Inc.
Greg Engel
Chief Executive Officer
gengel@Organigram.ca
Organigram Holdings Inc.
Giselle Doiron
Director of Investor and Media Relations
(506) 801-8986
www.organigram.ca
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