12.7 C
New York
Wednesday, June 23, 2021

What Has Been Driving Organigram (OGI) Stock To Rise 44% In Premarket?

The holding company of a leading licensed cannabis producer OrganiGram (NASDAQ: OGI) is on an uptick today in the premarket session. The OGIstock was in the $4.16 price range, rising 43.94% as of this writing. The rise has been coming on the heels of the company’s product-development collaboration news.


5 Stocks Under $10 That Are Poised to Take Off

Investing in stocks under $10 could significantly increase the returns on your portfolio, especially if you pick the right stocks! Within this report you will find 5 top stocks that offer investors huge upside potential and the best bang for their buck.

Add them to your watchlist before they take off!

Get the Top 5 Stocks Now!

Sponsored



How does collaboration benefit the company?

Organigram is publically traded Holdings company with dual listings on NASDAQ Global Select and TSX under symbol “OGI” on both exchanges.Organigram Inc., its wholly owned subsidiary, is a licensed Canadian producer of cannabis and cannabis-derived products.The mission of OGI is to produce high-quality cannabis grown indoors for patients and adult recreational consumers in Canada.Furthermore, the company expands its global footprint by developing international business partnerships.A series of brands have been developed by OGI, including SHRED, Trailblazer and Edison Cannabis Company, which are legal adult-use recreational cannabis brands.

OGI announced today that a wholly-owned subsidiary of British American Tobacco (BAT) will invest C$221 million into the company. Following are the highlights of the investment and collaboration deals:

  • About 58.3 million common shares of OGI, representing a 19.9% stake, have been subscribed by the BAT subsidiary.
  • Approximately $221 million in total proceeds will be received under the subscription at C$3.792 per share.
  • A separate Product Development Collaboration Agreement was also concluded between BAT and Organigram Inc.
  • The PDC will establish a “Center of Excellence” to focus on the development of next generation cannabis products, initially focusing on related CBD compounds.
  • In order to fulfill certain obligations incurred by Organigram under the PDC Agreement, about C$30 million of the Investment Proceeds will be reserved.
  • That includes the Center of Excellence’s share of Organigram’s funding obligations under mutually agreed-upon budgets.
  • BAT and Organigram will share the costs associated with the Center of Excellence.
  • BAT and Organigram have agreed to cooperate in developing cannabis vapour products, cannabis oral products, and any other technologies, products or intellectual property the parties may agree to develop.
  • All IP developed under this collaboration will remain the property of BAT, and Organigram will hold a perpetual, royalty-free, global licence to all such IP.
  • Likewise, the parties have agreed to grant each other a non-exclusive, perpetual, and irrevocable license to use certain existing intellectual property.

Finally,

Aside from strengthening the Organigram Stock position, the investment and the PDC Agreement will speed up the Driving Organigram (OGI) product development effort, strengthen its balance sheet, and promote the more rapid development of its research and development program. It will also help OGI stock expand its footprints in the U.S. as well as other international markets.

Get The Best Stocks To Trade Every Day!

Join now to get the NewsHeater.com pre-market morning brief 100% free

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest Articles

Get The Best Stocks To Trade Every Day!

Join now to get the NewsHeater.com pre-market morning brief 100% free

Get Notified Of Insider Trades, Analyst Upgrades & Downgrades, Earnings Updates & Best Stocks To Trade Every Single Morning

100% free. stop anytime no spam

Get The Best Stocks To Trade Every Day!

Join now to get the Newsheater.com pre-market morning brief 100% free

We do not sell or share your information with anyone.