What happened
No one got much of a buzz from OrganiGram Holdings (NASDAQ:OGI) stock on Tuesday. The shares fell a steep 23%, following the Canadian marijuana company’s announcement that it will float a secondary share issue.
So what
Tuesday morning, OrganiGram revealed it is issuing 32.5 million “units,” consisting of one common share of the company’s stock and one half of a single warrant to purchase one common share, at 1.85 Canadian dollars ($1.42) per unit. Tuesday’s sell-off dropped the stock price to roughly that level.
Each full warrant is exercisable for three years after the closing of the issue. It entitles the holder to buy one share of the cannabis company for 2.50 Canadian dollars ($1.92). The issue is expected to close Thursday, Nov. 12.
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