Company completes several key initiatives
positioning the company for future success.
MONCTON, NB, Dec. 18, 2017 /CNW/ - Organigram Holdings
Inc. (TSX-V: OGI, OTCQB: OGRMF) (the "Company") announced the
financial results for the fourth quarter and fiscal year ending
August 31, 2017. A copy of the
financial statements and the corresponding management discussion
and analysis are available on the investors section Company's
website (www.organigram.ca) and are also filed and available on
SEDAR (www.sedar.com).
"This has been a pivotal year for Organigram" stated
Greg Engel, CEO at
Organigram. "The company has seen phenomenal success
from a patient acquisition, product quality, and elevated standards
perspective".
Engel reflected on the key objectives that were communicated
upon his hire in early 2017. "Our objectives for the second
half of 2017 were to establish a commitment to quality within our
company, to elevate our reputation within the industry as a Tier
One licensed producer, and to secure the funds and resources that
Organigram will require to firmly establish itself as a leader
within the adult recreational market in 2018 and
beyond. With our most recent announcement to expand our
capacity to 65,000kg annually, it's my belief that we've been able
to accomplish all three of these objectives as we continue to grow
and transition in the industry".
Some of the key developments subsequent to the quarter and
fiscal year end include:
September 6, 2017 – The
Company announced it had entered into a memorandum of understanding
with the New Brunswick Innovation Research Chair in Medical
Technologies pursuant to which the parties will jointly develop an
industry leading method of microwave extraction of cannabinoid
extracts from marijuana plants.
September 15, 2017 – the
Company entered into a memorandum of understanding (the "MOU") with
newly named CannabisNB within the Province of New Brunswick for the supply of cannabis for
customers of the adult-use recreational marijuana market upon the
implementation of the governing legislation. Pursuant to the MOU,
the Company has guaranteed the Provincial Authority an annual
supply of a minimum of 5 million grams of cannabis product, an
arrangement which management of the Company estimates will generate
gross revenues of between $40 million
to $60 million per annum.
October 31, 2017 – the
Company acquired a land parcel of approximately 1.65-acres with an
existing building located at 55 English Drive in Moncton, New Brunswick which abuts the
property currently owned by the Company. The acquisition is part of
the Company's plan to develop its centralized campus and provides
the ability for future anticipated expansion.
November 29, 2017 – the
Company announced the launch of The Edison Project which is an
initiative designed to produce and offer the highest quality of
flower using the latest in technology and industry best practices
through the adoption of three key production techniques: top flower
pruning, hand-manicuring flowers and craft curing post-harvest. The
first two Edison Project related products released are #3 Edison
and #7 Edison which are now available to registered patients of the
Company and have resulted in almost $100,000 in revenue over the first three weeks of
availability.
December 4, 2017 – the
Company announced that it was the recipient of three awards
presented at the 2017 Lift Canadian Cannabis Awards, including Top
Sativa Flower for its premium flower, Wabanaki. The Canadian
Cannabis Awards is Canada's
leading medical cannabis awards program and recognizes leading
Licensed Producers, with awards being determined based on votes
cast by medical marijuana clients. Management of the Company is
pleased with the results and views this as a validation of the
Company's enhanced quality control protocols and emphasis on
quality.
Some selected highlights from the fiscal year ended
August 31, 2017 include:
2017
|
Operating
Metric
|
2016
|
7,404*
|
Patient
Count
|
3,051
|
785,325
|
Grams Sold –
Flower
|
732,022
|
584,450
|
ML Sold –
Oil
|
9,450
|
$5,713,703
|
Net Sales
|
$6,127,623
|
*The company surpassed 10,000 active registered patients as of
December 1, 2017 and continues to see
a positive trend in patient acquisition. Growth is driven in
part by its expanded product offering.
The company reported a net loss of $10,889,678, adjusted EBITDA (excluding FV
adjustment)** of -$7,798,604 and cash
flow from operations of -$5,818,444.
** These measures are non-GAAP financial measures
that do not have any standardized meaning prescribed by IFRS and
may not be comparable to similar measures presented by other
companies. These non-GAAP financial measures are explained in
the Management's Discussion & Analysis under Adjusted Gross
Margin, Adjusted EBITDA, and Cash Flow, a copy of which has been
filed today on www.sedar.com
For more information, visit www.organigram.ca
About Organigram Holdings Inc.
Organigram Holdings Inc. is a TSX Venture Exchange listed
company whose wholly owned subsidiary, Organigram Inc., is a
licensed producer of medical marijuana in Canada. Organigram is focused on producing the
highest quality, condition specific medical marijuana for patients
in Canada. Organigram's facility
is located in Moncton, New
Brunswick and the Company is regulated by the Access to
Cannabis for Medical Purposes Regulations ("ACMPR").
Organigram has been ranked in the top ten Clean Technology
& Life Sciences Sector on the TSX Venture Exchange 50.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
This news release contains forward-looking information which
involves known and unknown risks, uncertainties and other factors
that may cause actual events to differ materially from current
expectations. Important factors - including the availability of
funds, consummation of definitive documentation, the results of
financing efforts, crop yields - that could cause actual results to
differ materially from the Company's expectations are disclosed in
the Company's documents filed from time to time on SEDAR (see
www.sedar.com). Readers are cautioned not to place undue reliance
on these forward-looking statements, which speak only as of the
date of this press release. The Company disclaims any intention or
obligation, except to the extent required by law, to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
SOURCE OrganiGram