CANNAINVESTOR Magazine U.S. Publicly Traded March 2018 | Page 210

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Organigram Holdings Inc. DB

(TSXV: OGI.DB)

Organigram is a company that many us are likely familiar with by now. Organigram is listed on both the TSX Venture under OGI and also the OTC under ORGMF. In this issue, We would like to focus on their recently listed convertible debentures.

The link for the details of the debenture can be found HERE:

Before we dive into this a little further let’s share the definition of a convertible debenture with you according to Investopedia so that we are all on the same page:

“A convertible debenture is a type of loan issued by a company that can be converted into stock. Convertible debentures are different from convertible bonds because debentures are unsecured; in the event of bankruptcy, the debentures are paid after other fixed-income holders. The convertible feature is factored into the calculation of the diluted per-share metrics, which increases the share count and reduces metrics such as earnings per share (EPS).”

The reason we are bringing up Organigram debentures is to help offer an alternative investment for those of you that prefer something with less downside and still leave the potential for plenty of upsides on the table. At a high level, what this means is something more conservative in nature that doesn’t leave you as vulnerable to the crazy volatility we have been seeing in the market recently.

OK well here is the high level of the details:

- Convertible Debentures were sold at a price of $1,000 per Convertible Debenture

Note: the display of the debentures to purchase via your broker will likely show differently. For example, the price of $1000 may show as $100 as it does on stockwatch for example, and the quantity may show as 1000 units for 1 debenture. We cannot comment on how your broker will display this, I recommend calling them if it is unclear.

- Maturity date is January 31, 2020

- Interest rate of 6.00% per annum, payable semi-annually on June 30 and December 31

- Conversion price of $5.42 per Common Share

- Potential force conversion if Common Shares are greater than

$7.05 for any 10 consecutive trading days