Organigram Receives Health Canada License Renewal and Expansion for Final Elements of Phase 5 and Provides COVID-19 Update
March 23 2020 - 6:00AM
Business Wire
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 the remainder of its Phase 5 expansion together with the renewal
of its licenses for standard cultivation, standard processing and
sale for medical purposes under the Cannabis Regulations. The
renewed and expanded licenses are effective as of March 20,
2020.
Licensing
The terms of the licenses include approval of a two-floor
production facility designed to support all processing activity as
well as dedicated spaces for packaging of flower, pre-rolls, vape
pens and powdered beverages.
The Phase 5 expansion also includes a new extraction facility
with increased capacity for CO2 extraction, and winterization as
well as new capabilities designed for future product
development.
The amendments also allow for new purpose-built harvest and
drying rooms and support areas for quality assurance, maintenance
and sanitation.
The licenses are valid for a three-year period until March 20,
2023 and are subject to customary terms and conditions.
COVID-19
The Company has been carefully monitoring and actively planning
for the evolving situation related to COVID-19 and potential
impacts on the Company’s business and operations. The Company is
managing its production and staffing levels at its Moncton facility
(where not all functions can be addressed remotely) to protect the
health of its employees and the community. The Company currently
expects that its workforce will be materially reduced as a result
of voluntary and company-imposed temporary lay-offs to facilitate
adequate social distancing while the COVID-19 situation lasts. This
will result in corresponding production and packaging reductions.
The situation is evolving and it is not yet possible to quantify
these anticipated changes. The Company plans, among other things,
to reallocate its remaining workforce as needed, utilize inventory
already on hand and focus on leveraging its most efficient and
automated lines of production.
“We continue to monitor this rapidly changing situation and will
make the decisions necessary to ensure the safest environment for
our employees and their families as well as protecting the best
interests of our business and our stakeholders,” said Greg Engel,
Chief Executive Officer.
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 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
the actual percentage of workforce reduction; general risk of
negative global financial consequences and heightened uncertainty
as a result of COVID-19; impact on production or operations; impact
on demand for products and services; the effect on third-party
suppliers or service providers; the effect on any proposed
international business partnerships; production facilities running
at less than full capacity due absence of members of the workforce
for reasons related to COVID-19; issues related to public health
and global economic conditions; supply chain and distribution
disruptions and such other 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. 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20200323005156/en/
For Investor Relations enquiries, please contact: Amy Schwalm
Vice President, Investor Relations Amy.Schwalm@organigram.ca (416)
704-9057
For Media enquiries, please contact: Ray Gracewood Senior Vice
President, Marketing and Communications rgracewood@organigram.ca
(506) 645-1653
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