MONCTON, NB, March 6, 2018 /CNW/ - Organigram Holdings
Inc. (TSX VENTURE: OGI) (OTCQB: OGRMF) (the "Company" or
"Organigram"), a leading licensed producer of medical
marijuana based in Moncton, New
Brunswick, is pleased to announce that it has received
Health Canada approval for the remaining 13 rooms of its 23 room
Phase 2 expansion a week ahead of schedule. The Company
previously announced the available use of the first 10 rooms of the
Phase 2 expansion on February 12,
2018. The Company expects harvests from the Phase 2 expansion
to begin the third week of April.
Increased Efficiency and Improved Yields
The Phase 2 expansion includes significant improvements and
efficiencies to the Company's cultivation and processing systems.
Enhancements including a fully automated irrigation system in the
Phase 2 grow rooms, automated potting, fully automated waste
destruction system and automated packaging lines mean immediate and
ongoing cost savings as well as increased yields.
Organigram's standardized, data-based approach to production has
been trending yields that are in some cases 50% higher than its
previous estimates and the Company fully anticipates this to
continue to increase with enhanced improvements in cultivation and
environmental design in Phase 3 and Phase 4 as well as through
achievements of economies of scale through optimization of its
pre-vegetation and cloning processes.
"We are seeing some harvest yields that are more than 400 grams
per square foot a year and have witnessed the quality, density and
size of flowers improve tremendously," said Greg Engel, CEO, and "With these results we are
revising our current production forecast estimates as well as those
for our next expansion, set to break ground in April 2018, so that by early 2020 we will be
producing over 110,000 kg/annum from fully funded operations".
Revised Production Capacity Forecasts
The following table reflects the Company's revised production
capacity forecasts (note the timing and sizing of the Phase 4a,
4b, and 4c expansions remain subject
to change based on final design specifications):
Production
Campus
|
Target
Construction
Completion
Date
|
Production
Capacity kg/annum
|
Previous
Forecast
|
New
Forecast
|
Phases 1,
2
|
Already in
Cultivation
|
16,000
|
22,000
|
Phases 1, 2,
3
|
Phase 3:
May-2018
|
25,000
|
36,000
|
Phases 1, 2, 3,
4a
|
Phase 4a:
Apr-2019
|
39,500
|
65,000
|
Phases 1, 2, 3, 4a,
4b
|
Phase 4b:
July-2019
|
47,500
|
81,000
|
Phases 1, 2, 3, 4a,
4b, 4c
|
Phase 4c:
Apr-2020
|
65,000
|
113,000
|
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.
Forward-looking statements
The news release contains forward-looking information which
involves known and unknown risks, uncertainties and other 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, 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.
Neither 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.
The news release does not constitute an offer to sell or a
solicitation of an offer to buy any of the securities in the United
States. The securities have not been and will not be
registered under the United States Securities Act of 1933, as
amended, or state securities laws and may not be offered or sold
within the United States absent
such registration or an applicable exemption from such registration
requirements.
For more information, visit www.organigram.ca
SOURCE OrganiGram