01:55 PM EDT, 03/27/2024 (MT Newswires) -- Organigram Holdings ( OGI ) overnight Tuesday said it plans to raise gross proceeds of about C$25 million via an overnight marketed public offering of units.

The units are expected to be comprised of common shares and common share purchase warrants.

The company expects to price the offering in the context of the market with the price, total size, and other final terms of the offering to be determined at the time of entering into a definitive underwriting agreement between the company and the underwriters.

In addition, Organigram ( OGI ) will grant the underwriters an over-allotment option to buy up to an additional 15% of the offering, which will be comprised of additional units at the offering price.

The offering is expected to close on April 2. Organigram ( OGI ) expects to use the net proceeds to fund growth initiatives and for general corporate purposes.

The company's stock, which rose 6.7% in Canada yesterday, plunged 19.2% on last look on Wednesday.

Price: 2.95, Change: -0.70, Percent Change: -19.18