Organigram Receives Licensing for Chocolate Production & Packaging Area; Increased Production, Drying & Other Post-Harvesting...
December 13 2019 - 6:00AM
Business Wire
Company receives Health Canada approval for
16 additional cultivation rooms, expanded site perimeter for Phase
5 edibles facility including chocolate processing and packaging
rooms, and site perimeter of building housing Phase 4C
Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI), the parent
company of Organigram Inc. (the “Company” or “Organigram”), a
leading licensed producer of cannabis, is pleased to announce that
the Company has received Health Canada’s approval for the licensing
of 16 additional cultivation rooms under the Cannabis Regulations.
The expanded license was effective as of December 12, 2019.
The new cultivation rooms represent approximately 13,000 kg/yr1
of increased target cultivation capacity. These are the remaining
16 rooms licensed within the Company’s Phase 4B expansion and now
brings the Company’s Moncton campus licensed capacity to a target
of 89,000 kg/yr1.
As a result of this approval, cannabis plants will be moved into
these new rooms on a rolling basis in early 2020. The Company
anticipates initial harvesting of product from these new rooms by
the end of April 2020 assuming normal cultivation timelines. After
drying and other post-harvest processing (including packaging and
product testing) dried flower from these additional rooms is
expected to begin to be available for sale to patients and
customers in the Company’s fiscal quarter ending May 31, 2020.
The amendment also included an expanded site perimeter for Phase
4C as well as Phase 5 and approval for the operations area that
houses the Company’s state-of-the-art chocolate line. Additional
drying and storage areas have also been added to the Company’s
license.
The licenses are valid until March 27, 2020 and subject to terms
and conditions.
“This is a dynamic time for Organigram and the industry as a
whole. Cannabis 2.0 – the legalization of adult use recreational
cannabis edibles, vape products, extracts and topicals – is a new
era for cannabis here at home and around the world,” said Greg
Engel, CEO, Organigram. “Our physical expansion reflects our
ambitious response to this new opportunity as well as our ongoing
commitment to anticipating and meeting the demands of Canadian
cannabis consumers for new and innovative cannabis
experiences.”
Organigram has purchased and taken delivery of a high speed,
high capacity chocolate production line which includes a
state-of-the-art chocolate moulding line and a fully integrated
packaging line that includes advanced engineering, robotics,
high-speed labelling and automated carton packing. The Company
expects commissioning in time for initial sales in Q1 calendar
2020.
About Organigram Holdings Inc.
Organigram Holdings Inc. is a NASDAQ Global Select and TSX
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 high-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 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).
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. 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
factors that could change processing times, capacity utilization,
cultivation and in market timelines, including risks as disclosed
in the Company’s most recent annual information form, management’s
discussion and analysis and other Company documents filed from time
to time on SEDAR (see www.sedar.com) and filed or furnished to the
Securities and Exchange Commission on EDGAR (see www.sec.gov).
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.
________________________ 1 The forward-looking estimate of
target production capacity, once fully operational, is based on a
number of material factors and assumptions. Please see the
Company’s most recent MD&A available on SEDAR at www.sedar.com
and EDGAR at www.sec.gov and the disclaimer at the end of this
release.
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version on businesswire.com: https://www.businesswire.com/news/home/20191213005063/en/
For Investor Relations enquiries: Amy Schwalm Vice President,
Investor Relations Amy.Schwalm@organigram.ca (416) 704-9057
For Media enquiries: Ray Gracewood Senior Vice President,
Marketing and Communications rgracewood@organigram.ca (506)
645-1653
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