Health Canada-approved expansion triples production
capacity, lowers cost of production, improves yields
MONCTON, Feb. 12, 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 an
expanded cultivation license from Health Canada related to its
previously announced Phase 2 expansion.
The scope of the amendment includes approval of the
following:
- The entire perimeter of the expanded facility, approximately
150,000 sq ft
- The first ten of Organigram's new 23 three-level cultivation
rooms
- Improved functional design to facilitate production, including
a custom designed potting room, and an automated feed and watering
system.
As a result of this approval, cannabis plants were moved into
these new rooms on a rolling basis beginning on February 10, 2018. The Company will be in a
position to begin staggered harvests from these new rooms by the
third week of April. The remaining 13 rooms are expected to
come on line by March 10 pending
Health Canada approval.
Expansion
With the company's unique three-level canopy growing system, the
23 planned cultivation rooms represent an additional 10,800 kg/year
of production capacity increasing the Company's capacity from
approximately 5,200 kg/year to an estimated 16,000 kg/year.
"This is an important moment for Organigram" says Greg Engel. "We've spent years perfecting
three-level growing technology. We have developed a world-class
cannabis production facility and are proud to be able to offer our
medical and adult recreational customers exceptional award winning,
high quality product in 2018 and beyond."
The Phase 3 expansion currently under construction and scheduled
to be completed in May of 2018 will see the Company's production
increase to 25,000 kg/annum. A fully-funded Phase 4 expansion
currently scheduled to start construction in April will bring the
Company's production to 65,000 kg/annum in three stages over the
next two years.
Efficiency
The Phase 2 expansion also 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.
"As a company, we are steadfast in our commitment to applying
technology to the efficient production of exceptional cannabis
products," explains Engel. "Our pursuit of best-in-class processes
reflects our commitment to industry leadership and unprecedented
customer value."
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
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.
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 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 any 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