Organigram Provides Facility Expansion
Update
MONCTON, Dec. 7, 2018 /CNW/ - Organigram Holdings
Inc. (TSX VENTURE: OGI) (OTCQX: OGRMF), the parent company of
Organigram Inc. (the "Company" or "Organigram"), a leading licensed
producer of cannabis, is pleased to announce it has secured a loan
from Farm Credit Canada ("FCC") in the amount of
$10M, which will be used to finance
the expansion of the Company's Moncton campus. The debt is for a term
of five years at a variable rate of interest, and currently at
6.70%. The debt is secured against certain assets of
Organigram.
"Organigram is wholly committed to meeting the significant and
growing demand for high quality cannabis across Canada and standing ready to take on new
opportunities around the world," says Greg
Engel, CEO, Organigram. "We are very proud to be investing
once again in our state-of-the-art facility located here in
Moncton, New Brunswick, increasing
our production capacity and fostering cannabis growth
expertise".
Recent Facility Expansion
Currently, construction continues as planned on Phase 4A and
4B of the Company's expansion. This
expansion will continue to increase Organigram's production
capacity with the additional state-of-the-art grow rooms coming
online in April 2019 (Phase 4A) and
August 2019 (Phase 4B) increasing the Company's target production
capacity to 62,00 kg/yr and 89,000 kg/yr, respectively.
"The expansion of our facility represents the exceptional
reputation of our team and products in the industry and among
customers, and a focused strategic plan to ensure our continued
global leadership", says Greg Engel,
CEO, Organigram. "This increase in target production capacity
further demonstrates Organigram's commitment and ability to support
its partners and the growing demand across Canada for high quality adult recreational and
medical products".
As of October 24, 2018, power
officially began flowing from the Company's new substation. Having
a peak power capacity of 40 megawatts, this substation will provide
much cleaner electrical supply, improve the Company's electrical
consumption efficiency and lower the Company's maintenance cost on
equipment.
"Innovation and technology have always been a cornerstone of
Organigram's success and growth," says Greg
Engel. "Looking to the future, we continue to identify ways
to maximize the efficiency of the production process and reduce our
overall resource consumption."
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 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. In anticipation of the legal adult use recreational
cannabis in Canada, Organigram has
developed a portfolio of 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 Access to Cannabis for Medical Purposes
Regulations ("ACMPR").
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 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.
SOURCE OrganiGram