OrganiGram Holdings, Inc. (OTCQB: OGRMF) is a holding company that focuses on medical treatments, mostly medical marijuana. Shares of the medical holding company are rallying 7.87% on Monday, April 10, 2017. Over the past three months, OrganiGram Holdings, Inc. has seen average daily volume of 188,119 shares. However, volume of 448,224 shares or dollar volume of $1.12 million, has already exchanged hands on Monday.
Shares of OrganiGram Holdings, Inc. are increasing today, after the company announced it has signed a Letter of Intent to acquire Trauma Healing Centers, Inc. The companies have already been working together over the past two years and the acquisition allows for greater synergies with medical marijuana and trauma clinics. Trauma Healing Centers, Inc. serves 3,500 Canadians across seven clinics. Here is the full press release detailing of the acquisition:
OrganiGram Holdings, Inc. Press Release:
MONCTON, NEW BRUNSWICK–(Marketwired – Apr 10, 2017) – OrganiGram Holdings, Inc. – (TSX VENTURE:OGI)(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.
For more information about Trauma Healing Centers visit www.traumahc.com.
For more information visit www.organigram.ca.
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.