Organigram Holdings Inc (CVE:OGI) entered into a letter of intent to acquire issued and outstanding stock of Trauma Healing Centers Incorporated. The CEO Greg Engel reported that the two companies have cherished a close working alliance in the past 10 years, and they have immense mutual respect for their business.
THC’s commitment to customer care, particularly within the veteran community, is allied with customer care commitment as part of firm’s Canada’s Safest Cannabis initiatives. They also consider this arrangement enables both firms the resources to advance and achieve future expansion plans.
Trauma Healing Centers, which is rejoicing its second anniversary, focuses on medicinal cannabis assessment and prescribing. It sees people on a referral basis and provides a multi-disciplinary approach to curing chronic conditions. THC is the only firm to boast a multi-disciplinary status with Blue Cross for RCMP veteran and military customers. THC currently services more than 3,500 patients across 7 Canadian sites with plans to commence seven more sites.
The deal will result in Trauma Healing Centers joining the Organigram thereby consolidating two major medical cannabis players within the market. THC will continue to work independently by offering referrals based on customer need to any approved producer in Canada.
Kyle Atkinson, the President of Trauma Healing Centers, reported that they are delighted to be joining the Organigram group. They have set themselves as a major medicinal cannabis manufacturer in Canada and they look forward to a rewarding relationship. As per the terms of the LOI, the buy consideration comprises of the issuance of over 700,000 common shares of Organigram at a considered value of $2.78 a share.
The closing of the deal is dependent on customary closing conditions, comprising implementation of definitive documentation, closure of satisfactory due diligence and acceptance of applicable third party and supervisory approvals, counting that of the TSX Venture Exchange.