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Organigram Closes $140 Million Credit Facility with Bank of Montreal
Organigram Closes $140 Million Credit Facility with Bank of Montreal Canada NewsWi...
About this update from Organigram Global Inc.
[{"type":"text","content":"\n\n\n\nOrganigram Closes $140 Million Credit Facility with Bank of Montreal\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\n\nCanada NewsWire\nMONCTON, NB, MAY 31, 2019\n\n\n\nNon-dilutive Financing Provides Company with Significant Financial Flexibility\n MONCTON, NB, MAY 31, 2019 /CNW/ - Organigram Holdings Inc. (NASDAQ: OGI) (TSXV: OGI), the parent company of Organigram Inc. (collectively, the \"Company\" or \"Organigram\"), a leading licensed producer of cannabis, is pleased to announce that it has closed its previously announced credit facility with Bank of Montreal (\"BMO\") as lead arranger and agent as well as a syndicate including three other lenders.  The facility consists of a $115 million term loan and a $25 million revolving credit facility (together, the \"Facilities\"), both of which mature in May 2022.  Included in the facility is an uncommitted option to increase the Facilities by an incremental $35 million to a total of $175 million, subject to agreement by BMO and satisfaction of certain legal and business conditions.\n\n \n \n\n \n\"The closing of this credit facility reflects BMO's and the syndicate lenders' vote of confidence in our management team, ability to deliver financial results, and investment in our world-class Moncton campus,\" said Greg Engel, Chief Executive Officer. \"Our current expansion plans are fully funded as we continue to remain on track for completion of Phases 4 and 5 of our campus.\" \n\"As a Company we are always looking to optimize our capital structure and reduce our cost of capital,\" remarked Paolo De Luca, Chief Financial Officer.  \"We have chosen not to access the public capital markets since our last financing in January 2018 in order to avoid dilution to our shareholders.  This credit facility is only possible because of our focus on running a profitable and sustainable business with a disciplined spend that sets us apart amongst our peers.\"\nThe Facilities are secured by assets of Organigram and its subsidiaries, which primarily consists of the Moncton cam...