Organigram ncreases investment in Phylos after milestone achievement

Organigram announced that Phylos Bioscience, a U.S. cannabis genetics company and provider of production ready seeds, has achieved the first milestone under the loan agreement entered into in May 2023 and has closed the second tranche under the Loan Agreement with Organigram advancing $2.75M to Phylos. This second tranche follows the initial tranche of $3.25M advanced in May 2023 for a total of $6M in senior secured convertible loans currently outstanding. After funding the second tranche, $6M of principal is outstanding and the Loan Agreement contains a commitment to fund up to an additional $2M no later than May 2025, upon the completion of certain milestones. The Convertible Loans will accrue paid-in-kind interest at a rate of U.S. Prime + 3.5% with an overall cap of 11% subject to certain conditions. The Convertible Loans’ principal and payment-in-kind interest outstanding are convertible into common share equity of Phylos under certain circumstances.