Organigram Holdings, Inc. (OTCMKTS:OGRMF) announced the closure of its previously reported Licensing transaction deal with TGS International LLC. Pursuant to the deal between the TGS and firm, which was first reported on September 1, 2016, the TSXV has sanctioned. The firm has released 437,957 shares to TGS at a price of $1.37 a share. According to the agreement terms, the shares will be offered to TGS as per an escrow plan that pertains to certain operational and calendar milestones.
Denis Arsenault, the CEO of Organigram, said that they are delighted to close this deal and expect to continuing their work with TGS. Their cannabis expertise and technological knowledge are key for company as they persist to focus on increasing production yields, developing and innovating portfolio of premium quality cannabis products and streamlining our extraction processes.
Prior to this update, in the last month Organigram reported that completion of its previously announced deal of the industrial property close to the firm’s current facility in Moncton. The deal, which comprises a 136,000 square foot structure based on an industrial land, supports the firm’s phased expansion measures pertaining to extracts processing and cannabis production.
The Board has permitted the preliminary buildout of nearly 70,000 square feet. This stage of construction will lead Organigram’s yearly production capacity to nearly 16,000 kg of flower, and almost 6,400 kg of sweet leaf and fan. The planned expansion comprises an advanced 20,000 square foot business scale extracts and oils manufacturing facility that is planned and designed in association with partners in Colorado. This phase of fully supported expansion will begin immediately and is anticipated to be closed and operational by next year.
The left square footage of the bought building is being subleased by company and offers Organigram with nearly $777,000 in shared operating costs and lease payments on a yearly basis. It permits the firm to keep its expenses low and to carry out its expansion measures in a cost effective manner.