Moncton, New Brunswick-based cannabis producer Organigram (TSX VENTURE: OGI) (OTC: OGRMF), has closed its private placement investment in Eviana Health Corporation. Organigram, along with an institutional strategic investor, each participated 50% in a $10 million debenture offering by Eviana.
Organigram will have the right to buy up to 25% of Eviana’s annual CBD oil at 95% of the CBD oil wholesale market price for a period of 5 years. In addition, Organigram will get one seat on Eviana’s Board of Directors, to be occupied by Mr. Paolo De Luca, CFO of Organigram.
“Our investment in Eviana represents just the beginning of our international aspirations”, said Greg Engel, CEO of Organigram, “but is representative of our approach to work with trusted local partners to both move quickly with boots on the ground…”.
“We have also strengthened our balance sheet as we scale up our production operation and fund our future growth plans in the international CBD market,” stated Avram Adizes, CEO of Eviana.
Eviana issued 10,000 debenture units maturing in 24 months. They consist of 1) $1,000 principal of convertible debentures; and 2) one half of one common share purchase warrant. Each warrant can be exercised for 870 common shares at $1.30 for 24 months. The debentures pay 10.0% interest.
Organigram focuses on producing high-quality, indoor-grown cannabis for patients and adult recreational consumers in Canada, and developing international business partnerships. It has a portfolio of five brands including Edison (2), Ankr Organics, Trailblazer and Trailer Park Buds.
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Source Organigram press release