Company sends initial shipments of more than
130 thousand units
MONCTON, NB, May 29, 2019 /CNW/ - Organigram Holdings Inc.
(TSX VENTURE: OGI) (NASDAQ: OGI), the parent company of Organigram
Inc. (the "Company" or "Organigram"), a leading licensed producer
of cannabis, is pleased to announce it has recently shipped more
than one hundred and thirty thousand units of pure cannabidiol
(CBD) oil destined for markets across Canada.
The recent legalization of adult-use, recreational cannabis in
Canada has resulted in an
increased demand for CBD, a naturally occurring compound in
cannabis which has no psychoactive effect.
"Since legalization, Canadian consumers have proven themselves
to be not only receptive to, but surprisingly well educated about,
the benefits of CBD," says Greg
Engel, CEO, Organigram. "Consumers have embraced the idea of
cannabis as it relates to overall wellness. While medical patients
have long since discovered the potential benefits of CBD, we didn't
anticipate how that awareness would translate into the recreational
market but are pleased to be able to help meet this consumer
demand."
Organigram attributes its ability to respond to growing CBD
demand in part to the success of its strategic relationships and
ongoing inputs from its provincial partners.
As previously announced, Organigram has a long-term agreement in
place with 1812 Hemp, a New
Brunswick-based industrial hemp research company. Initially,
the deal offered Organigram access to approximately 6,000 kg of
dried hemp flower harvested in the fall of 2018 which the Company
purchased and sent for extraction in the first calendar quarter of
2019. In addition, Organigram has a right-of-first refusal on
future procurement of hemp from 1812 Hemp which is expected to
increase significantly over 2018 levels in 2019 and beyond.
Likewise, as announced in early 2019, Organigram's multi-year
extraction contract with Valens GroWorks Corp. means Valens
will continue to extract cannabis flowers and trim from
Organigram's Moncton operation as
well as hemp to produce extract concentrate. As anticipated, this
concentrate is now being used by Organigram to produce cannabis
oils. Following legalization of derivative based products, the
Company plans to use the concentrates in the production of
derivative edible and vaporizable cannabis products.
"The CBD market here in Canada
and around the world represents a rapidly growing opportunity,"
explains Engel. "At Organigram, we are committed to developing the
capacity and relationships that deliver the supply, expertise and
quality our customers are looking for while being able to scale up
quickly to meet the increasing demand of the global medical and
adult recreational cannabis markets."
Organigram's CBD oil is currently packaged in 25 ml bottles with
a concentration of 10mg/ml of CBD.
About Organigram Holdings Inc.
Organigram Holdings
Inc. is a TSX Venture Exchange and NASDAQ Global Select listed
company whose wholly owned subsidiary, Organigram Inc., is a
licensed producer of cannabis and cannabis-derived products in
Canada.
Organigram is focused on producing the highest-quality,
indoor-grown cannabis for patients and adult recreational consumers
in Canada, as well as developing
international business partnerships to extend the company's global
footprint. Organigram has also developed a portfolio of legal adult
use recreational cannabis brands including The Edison Cannabis
Company, Ankr Organics, Trailer Park Buds and
Trailblazer. Organigram's primary facility is located
in Moncton, New Brunswick and
the Company is regulated by the Cannabis Act and
the Cannabis Regulations (Canada).
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.
This news release contains forward-looking information. Often,
but not always, forward-looking information can be identified by
the use of words such as "plans", "expects", "estimates",
"intends", "anticipates", "believes" or variations of such words
and phrases or state that certain actions, events, or results
"may", "could", "would", "might" or "will" be taken, occur or be
achieved. Forward-looking information involves known and unknown
risks, uncertainties and other factors that may cause actual
results, events, performance or achievements of Organigram to
differ materially from current expectations or future results,
performance or achievements expressed or implied by the
forward-looking information contained in this news release.
Examples of such statements include statements with respect to CBD
demand and market conditions and the nature of the adult-use
recreational market and consumer patterns. Risks, uncertainties and
other factors involved with forward-looking information could cause
actual events, results, performance, prospects and opportunities to
differ materially from those expressed or implied by such
forward-looking information, including risks associated with new
product categories, regulation and timing for implementation, and
such risks as disclosed in the Company's most recent annual
information form and other 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. Although the
Company believes that the assumptions and factors used in preparing
the forward-looking information in this news release are
reasonable, undue reliance should not be placed on such information
and no assurance can be given that such events will occur in the
disclosed time frames or at all. The forward-looking information
included in this news release are made as of the date of this news
release and the Company disclaims any intention or obligation,
except to the extent required by law, to update or revise any
forward-looking information, whether as a result of new
information, future events or otherwise. We seek safe harbor.
SOURCE OrganiGram