Organigram Enters into Non-Binding Term Sheet for 26% Equity Interest in Eviana Health Corporation
$10 Million investment into European hemp producer builds on Organigram’s growing international presence
Toronto, Ontario, June 04, 2018 (GLOBE NEWSWIRE) — Organigram Holdings Inc. (“Organigram”) (TSX VENTURE: OGI) (OTCQB: OGRMF) and Eviana Health Corporation (“Eviana”) (CSE: EHC) (OTC: EVNNF) (collectively the “Companies”) are pleased to jointly announce that the Companies have entered into a non-binding term sheet (the “Term Sheet”) whereby Organigram will make a significant equity investment into Eviana. Additionally, the Term Sheet contemplates Organigram entering into an offtake agreement with Eviana for up to 50% of the cannabidiol (“CBD”) production of Eviana for a period of five years, subject to adjustment based on Organigram’s equity interest in Eviana.
This agreement is a key facet of our ongoing international expansion efforts. Our investment and concurrent offtake agreement with Eviana will provide Organigram with a source of low-cost, high-quality CBD for the burgeoning medical market within Europe. The proven cultivation and processing costing model that Eviana has developed will allow us to bring a range of innovative products to the global CBD marketplace.
Greg Engel, CEO, Organigram
The potential investment supports Organigram’s aggressive growth strategy and helps ensure that Organigram is well prepared to meet the international demand for CBD oil.
We are very excited to have Organigram on board with us. Its support as both a financial and strategic partner will be a major benefit to the stakeholders of Eviana as we move forward in executing our vision to become the preeminent hemp-based CBD supplier in Europe.
Avram Adizes, CEO of Eviana
Under the terms of the equity investment, which the Companies anticipate completing on or around July 13, 2018 (“Closing Date”), Organigram will invest $10,000,000 in cash into Eviana for 8,695,652 common shares of Eviana and common share purchase warrants (the “Warrants”) as follows: (i) 2,373,319 Warrants exercisable at $1.50 for 18 months; (ii) 3,337,480 Warrants exercisable at $1.75 for 24 months; and (iii) 3,087,487 Warrants exercisable at $2.00 for 36 months, all subject to certain acceleration provisions. The number of Warrants are subject to a proportional adjustment to result in Organigram holding a 40% interest in Eviana on…