Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI), the parent company of Organigram Inc. (collectively, the “Company” or “Organigram”), a leading licensed producer of cannabis, is pleased to announce that the Company has repaid all outstanding balances (approximately $58.5 million) (the “Repayment”) under the facilities provided under its credit agreement (the “Credit Agreement”) dated November 27, 2020, with Bank of Montreal (“BMO”) as lead arranger and agent as well as a syndicate of other lenders.
The Repayment results in annual interest savings of $2.7 million based on the outstanding balance at the time of Repayment. After giving effect to the Repayment, the Company’s pro forma cash position is $235 million.
The Company is in discussions with BMO to amend the Credit Agreement to provide continuing support and flexibility to Organigram in growing its business on revised terms and conditions.
