Organigram Invests Additional $2.5M In CBD Biotech Co Hyasynth, Wraps Up $10M Debenture Purchase Deal

Organigram Holdings Inc. OGI OGI has acquired an additional $2.5 million of secured convertible debentures in Hyasynth Biologicals Inc.

The move follows the second $2.5 million tranches of financing under the $10 million debenture purchase deal between Organigram Inc. – a subsidiary of the Moncton, New Brunswick-based company – and Hyasynth, which was wrapped up in October 2020.

Organigram initially acquired $5 million of Hyasynth Debentures in September 2018.

The parties have also amended certain of the debentures' terms purchased by Organigram from Hyasynth in previous tranches, Organigram said Wednesday.

Proceeds of the investment are poised to advance Hyasynth's production scalability as well as investment into new cannabinoid technologies, business development efforts, and company growth.

"Organigram continues to be extremely focused on delivering meaningful innovation to cannabis consumers, which is why we are so excited about deepening our relationship with Hyasynth," Beena Goldenberg, CEO of Organigram said. "They have achieved tremendous scientific advancement in the cannabinoid biosynthesis space with technology expected to be protected by intellectual property."

The transaction brings Organigram's total investment in Hyasynth to $10 million, building upon previously completed milestones and recent successes of the company in advancing technology and business development.

"We've demonstrated our ability not only to achieve scalable production of CBD/CBDA but also improve the cost of production exponentially," Kevin Chen, CEO and co-founder of Hyasynth said. "We are in the process of developing a series of rare cannabinoids to ultimately become the supplier of choice for sustainable and high-quality ingredients."

In addition, Organigram retained its two nominees to Hyasynth's board of directors, comprised of seven members.

More recent news from Organigram:

• Organigram Stock Up On $36M Acquisition Of Quebec-Based Craft Cannabis, Hash Producer
• Organigram's Stock Climbs Back Into Pattern After Q4 Revenue Beat
• Organigram Q4 Revenue Grows 22% YoY To $24.9M, Remains #4 Cannabis LP In Canada
• Organigram Launches New CBD Wellness Brand: Vegan-Friendly & Sugar-Free Soft Chews

OGI Price Action

Organigram's shares traded 0.5102% lower at $1.95 per share at the time of writing on Wednesday.

Photo: Courtesy of John Guccione www.advergroup.com from Pexels