Company Releases Financial Results and
Business Update for its 2018 Fiscal First Quarter
MONCTON, NB, Jan. 29, 2018 /CNW/ - Organigram Holdings Inc.
(TSX VENTURE:OGI) (OTCQB:OGRMF) (the "Company" or "Organigram"), a
leading licensed producer of medical marijuana, announces the
financial results for the fiscal first quarter of 2018 ending
November 30, 2017. A copy of the
financial statements and the corresponding management discussion
and analysis (MD&A) is available on the investors section of
the Company's website (www.organigram.ca) and are also filed and
available on SEDAR (www.sedar.com).
Financial Results*
Organigram's financial results for the quarter ending
November 30, 2017 saw the Company
report its highest quarterly net sales to date. Net sales rose to
$2.7 million in Q1-2018 (up from
$2.1 million in Q4-2017, and up from
$2.2 million in Q1-2017). The Company
reported a net loss and comprehensive loss of $1.4 million for Q1-2018 (compared to a net loss
of $2 million in Q4-2017 and
$0.8 million in Q1-2017).
The Company sold approximately 195,000 grams of dried flower in
Q1-2018 (compared to approximately 187,000 in Q4-2017 and
approximately 260,000 in Q1-2017 respectively).
The Company saw significant growth in its sales of cannabis oil.
Cannabis oil sales were approximately 419,000 ml in Q1-2018
(compared to approximately 178,000 ml and 77,000 ml in Q4-2017 and
Q1-2017 respectively). The Company's growth in cannabis oil sales
was fuelled by its Shubie Cannabis Oil 50ml bottle
containing high CBD content.
The Company's registered patients increased to approximately
10,700 by the end of Q1-2018 up 169% from Q1-2017.
"What is clear is that through a dogged commitment to product
quality and innovation, we have built and are sustaining tremendous
momentum," says Greg Engel, CEO of
Organigram. "We have been patient but determined in building a
world-class facility imagined and supported by a world-class team.
We are proud that our customers are recognizing and enjoying the
results of that vision."
Expansion in Production
The Company continues to make significant headway in increasing
its overall production capacity and ensuring that it is prepared to
be a market leader in the proposed adult recreational market which
is anticipated for a July 2018 launch
date.
The Company's Phase 2 expansion is set to be completed by end of
January 2018 and the Company has
submitted all required documentation to Health Canada in order to
begin its vegetation cycle in February, making this expansion
available for cannabis harvest and sale in time for the adult
recreational market. When the Phase 2 expansion is fully
operational, the Company's total run-rate production will be
increased to 16,000 kg/year in total.
Phase 3 expansion continues to move ahead on schedule. Upon
completion of Phase 3 construction in May
2018, the Company will have further increased its estimated
production capacity from approximately 16,000 kg/year to 25,000
kg/year.
Phase 4, which is in the final planning stages and is fully
funded, will help increase the Company's production capacity to
65,000 kg/year. These expansions will make Organigram one of the
top indoor cannabis producers in Canada.
"As a country and as a company, we are at the starting line of
an unprecedented opportunity to lead the world in our understanding
and approach to the production and legal use of cannabis," says
Engel. "Organigram remains committed to thoughtful, trusted and
effective leadership in the industry at home and abroad and we
stand ready to meet the needs of our current and future
customers."
Winner of Three Canadian Cannabis Awards
On December 4, 2017, Organigram
was honoured with three Canadian Cannabis Awards for 2017 including
"Top Sativa Flower" for its premium flower: Wabanaki, "Top
Blended/Value Variety" for its unique blend: Blueberry
Cheesecake and "Top Licensed Producer for Compassionate
Pricing". The Company won two of the available six product
categories further validating the Company's unwavering focus on
product quality.
Launch of the Edison Project
On November 27, 2017, the Company
launched the Edison Project, a line of premium,
hand-manicured flower resulting in better-looking product, minimal
stem or leaf, and incredible levels of trichome retention. The
concept has been a resounding success exemplified by impressive
Lift ratings and re-order rates on par with lesser priced flowers.
Consequently, the Company has expanded the Edison Project to
three strains and different package sizes.
Supply Agreements with New
Brunswick and Prince Edward
Island
Organigram had previously announced the signings of a memorandum
of understanding (MOU) with each of the provincial authorities in
both New Brunswick and
Prince Edward Island for a minimum
of five million and one million grams of cannabis per year
respectively to serve the recreational market. The Company believes
it is well positioned to announce further similar transactions with
other provincial authorities.
Financings
On December 18, 2017 the Company
closed a short form prospectus bought deal offering for net
proceeds of more than $54 million as
well as entering into a Letter of Intent with Farm Credit Canada
for a loan in the amount of $10
million.
On January 24, 2018 the Company
filed a final short form prospectus for a $100 million (gross proceeds, not including the
exercise of the over-allotment option, if exercised) bought deal
convertible debenture financing previously announced on
January 10, 2018. The Company
anticipates closing to occur on or about January 31, 2018.
The Company believes it is sufficiently funded to execute on its
expansion efforts.
Strengthened Management Team
The Company continued to strengthen its leadership team with the
hiring of Tim Emberg as the new Vice
President of Sales and Commercial Operations, the appointment of
Larry Rogers as Vice President of
International Business and the appointment of Paolo De Luca as Chief Financial Officer.
Mr. Emberg has a proven track record in healthcare and consumer
packaged goods (CPG) having previously worked for Roche Canada,
Jamieson Labs, and Frito-Lay Canada.
Mr. Rogers has previously worked at Organigram in roles
including: member of the Board of Directors, Chief Operating
Officer and VP of Business Development and Special Projects since
2014. Mr. Rogers had also previously worked for 6 years in a Swiss
private equity firm with offices in Western Europe, Asia and North
America. Mr. Rogers' appointment as VP of International
Business is in furtherance with the Company's corporate strategy of
focusing on international opportunities.
Mr. De Luca, CPA, CA, CFA, brings over 20 years of diversified
financial business experience including leadership roles at
companies such as West Face Capital, Meridian LNG, Potash Ridge,
C.A. Bancorp and TD Securities.
*Some of these figures may contain non-GAAP financial
figures that do not have any standardized meaning prescribed by
IFRS and may not be comparable to similar figures presented by
other companies. These non-GAAP financial figures are
explained in the Management's Discussion & Analysis under
Adjusted Gross Margin, Adjusted EBITDA, and Cash Flow, a copy of
which has been filed on www.sedar.com.
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