tiprankstipranks
OrganiGram Pays Next $2.5M To Cannabis Biotech Firm Hyasynth
Market News

OrganiGram Pays Next $2.5M To Cannabis Biotech Firm Hyasynth

Cannabis producer OrganiGram Holdings invested an additional $2.5 million in Hyasynth Biologicals following the completion of the first milestone linked to Hyasynth’s first sale of CBDa product, which is produced and extracted from yeast.

Hyasynth, a private biotech company, is a pioneer in the field of cannabinoid science and biosynthesis. In September 2018, OrganiGram (OGI) advanced $5 million to Hyasynth as part of a Debenture Purchase Agreement between the two companies. The $2.5 million payment is the second of the three tranches outlined in the agreement and brings OrganiGram’s total investment in Hyasynth to $7.5 million.

OrganiGram has a right to purchase the remaining $2.5 million of convertible secured debentures, which would then bring its total investment in Hyasynth to $10 million upon the achievement of another designated milestone by Hyasynth as well as compliance with other specified terms and conditions.

In addition to the $2.5 million investment, the company said that it continues to have the right to purchase potentially all of Hyasynth’s cannabinoid or cannabinoid related production at a 10% discount to the wholesale market price for a period of ten years from Hyasynth’s commencement of commercial production, subject to the terms under the agreement. (See OGI stock analysis on TipRanks)

Oganigram’s CEO Greg Engel commented, “While we believe there will always be a sizeable market for dried flower and derivative based products produced at our indoor facility, it is exciting to watch Hyasynth’s progress in biosynthesis. We believe biosynthesis has the potential to redefine the cannabinoid production landscape by setting a scalable and reliable platform of supply that cannabis producers and pharmaceutical companies can leverage for success.”

“As the demand for large-scale, pure and consistent supply grows in both the pharmaceutical and consumer sectors, we are pleased to continue to support Hyasynth’s work.”

Earlier this month, Raymond James analyst Rahul Sarugaser reiterated a Hold rating and C$5 price target for OrganiGram.  

The Street is cautiously optimistic about OrganiGram with a Moderate Buy consensus based on 2 recent Buys and 1 Hold. With Organigram shares (on NASDAQ) plunging 48% so far this year, the average analyst price target of $3.59 implies an upside potential of about 185% in the months ahead.  

Related News:
Walmart Sues US Government In Opioid Pharmacists Dispute
J&J Prepares To Restart US Covid-19 Vaccine Trial Recruitment
Gilead’s Covid-19 Remdesivir Drug Scores FDA Approval; Shares Surge

Trending

Name
Price
Price Change
S&P 500
Dow Jones
Nasdaq 100
Bitcoin

Popular Articles