Continues trend of record quarterly net revenue
and positive Adjusted EBITDA while growing share of adult
recreational market
Q4 FISCAL 2022 FINANCIAL HIGHLIGHTS
- Continued record growth in net revenue, reaching $45.5 million,
the highest in the history of the Company, up 83% from $24.9
million in the same prior-year period and 19% from $38.1 million in
Q3 Fiscal 2022.
- Adjusted EBITDA1 of $3.2 million, the third consecutive quarter
of positive Adjusted EBITDA, compared to negative Adjusted EBITDA
of $4.8 million in the same prior year period.
- Adjusted Gross Margin1 of $10.4 million or 23%, compared to
$3.0 million or 12% in the same prior year period, reflecting
improvements from increased efficiencies and higher sales
volume.
FISCAL 2022 FINANCIAL HIGHLIGHTS
- Net revenue of $145.8 million, an increase of 84% over $79.2
million in Fiscal 2021.
- Adjusted EBITDA1 of $3.5 million, compared to a loss of $27.6
million in Fiscal 2021.
- Adjusted Gross Margin1 of $33.4 million or 23%, an increase of
837% over $3.6 million or 5% in Fiscal 2021.
SALES AND OPERATIONAL HIGHLIGHTS
- In Q4 Fiscal 2022, held #3 position among Canadian licensed
producers with 8.2% market share compared to 7%, in the same
prior-year period. In October, Organigram achieved the #2 market
position.2
- According to OCS shipped sales data, Organigram achieved the #1
market position in Ontario since January, 2022 and maintained it
throughout the balance of the fiscal year3.
- Organigram achieved the #1 market position in the Maritimes,
since January 2022, until the end of the fiscal year3.
- Continues to hold #1 position in dried flower, the largest
category of the Canadian cannabis market, the #3 market position
nationally in gummies2 and the #1 position for hash in the Quebec
market4.
- Introduced 18 SKUs in Q4 Fiscal 2022 for a total of 85 in
market.
- Generated a 11% increase in yield per plant in Q4 Fiscal 2022,
compared to the same prior year period, as a result of environment
improvements which contributed to reduced cultivation costs of 23%
in Fiscal 2022 versus Fiscal 2021 and provided additional flower to
address growing consumer demand.
- In Q4 Fiscal 2022, completed 4C expansion at Moncton growing
facility, increasing annual capacity from 45,000 kilograms at the
end of Fiscal 2021 to 85,000 kilograms of dry flower at the end of
fiscal 2022, which will drive further cost reductions through
operating leverage.
- Shipped $6.0 million of high margin flower to Australia and
Israel in Q4 Fiscal 2022. In Fiscal 2022, Organigram shipped $15.4
million of flower internationally, compared to $0.4 million in
Fiscal 2021.
Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI), (the
“Company” or “Organigram”), a leading licensed producer of
cannabis, announced its results for the fourth quarter and year
ended August 31, 2022 (“Q4 Fiscal 2022” or "Fiscal 2022").
"In Fiscal 2022, our innovative product launches, comprehensive
retail distribution, sales execution, and operational excellence
helped Organigram become a leading consumer products company in the
cannabis sector," said Beena Goldenberg, Chief Executive Officer.
"During the year, we increased and optimized production to meet
consumer demand, drove market share gains nationally and solidified
our position as serious competitors in several new categories. In
Fiscal 2023 we expect continued success as we build on the high
recognition of our brands, our track record of innovation and our
proven ability to execute.
Select Key Financial Metrics (in $000s
unless otherwise indicated)
Q4-2022
Q4-20213
% Change
Fiscal 2022
Fiscal 20213
% Change
Gross revenue
65,657
36,182
81
%
209,109
109,859
90
%
Excise taxes
(20,177
)
(11,317
)
78
%
(63,300
)
(30,696
)
106
%
Net revenue
45,480
24,865
83
%
145,809
79,163
84
%
Cost of sales
36,718
25,867
42
%
119,037
103,567
15
%
Gross margin before fair value changes to
biological assets & inventories sold
8,762
(1,002
)
974
%
26,772
(24,404
)
210
%
Realized loss on fair value on inventories
sold and other inventory charges
(10,191
)
(7,286
)
40
%
(35,204
)
(35,721
)
(1
)%
Unrealized gain (loss) on changes in fair
value of biological assets
15,677
11,639
35
%
40,001
31,726
26
%
Gross margin
14,248
3,351
325
%
31,569
(28,399
)
211
%
Adjusted gross margin1
10,362
3,017
243
%
33,390
3,563
837
%
Adjusted gross margin %1
23
%
12
%
92
%
23
%
5
%
360
%
Selling (including marketing), general
& administrative expenses2
15,657
12,415
26
%
59,768
45,727
31
%
Adjusted EBITDA1
3,232
(4,818
)
167
%
3,484
(27,643
)
113
%
Net loss
(6,144
)
(25,971
)
76
%
(14,283
)
(130,704
)
89
%
Net cash used in operating activities
(19,695
)
(7,699
)
156
%
36,211
28,589
27
%
1 Adjusted gross margin, adjusted gross
margin % and Adjusted EBITDA are non-IFRS financial measures not
defined by and do not have any standardized meaning under IFRS;
please refer to “Non-IFRS Financial Measures” in this press release
for more information. 2 Excluding non-cash share-based
compensation. 3 During Fiscal 2022, certain reclassifications have
been made to the prior periods comparative figures to enhance
comparability with the current period amounts, none of the
reclassifications resulted in a change to net loss or shareholders'
equity. See Note 29 of the Financial Statements.
Select Balance Sheet Metrics (in
$000s)
AUGUST 31, 2022
AUGUST 31, 2021
% Change
Cash & short-term investments
(excluding restricted cash)
98,607
183,555
(46
)%
Biological assets & inventories
68,282
48,818
40
%
Other current assets
54,734
28,242
94
%
Accounts payable & accrued
liabilities
40,864
18,952
116
%
Current portion of long-term debt
80
80
—
%
Working capital
166,338
234,349
(29
)%
Property, plant & equipment
259,819
235,939
10
%
Long-term debt
155
230
(33
)%
Total assets
577,107
554,017
4
%
Total liabilities
69,049
74,212
(7
)%
Shareholders’ equity
508,058
479,805
6
%
“We are pleased with record net revenue and the third
consecutive quarter of positive Adjusted EBITDA achieved in Q4
Fiscal 2022. This is a reflection of our disciplined approach, the
execution by our team and our success at integrating acquisitions,”
added Derrick West, Chief Financial Officer. “We enter Fiscal 2023
well-capitalized and with a proven strategy to continue to generate
shareholder value.”
Key Financial Results for the Fourth Quarter and Fiscal
2022
- Net revenue:
- Compared to the prior period, net revenue increased 83% to
$45.5 million, from $24.9 million in Q4 Fiscal 2021. The increase
was primarily due to an increase in adult-use recreational revenue,
partly offset by lower average net selling price (“ASP”) due to
product mix and a decrease in medical revenue.
- For Fiscal 2022, net revenue increased 84% to $145.8 million
from $79.2 million in the previous year primarily due to an
increase in recreational and international revenue, partially
offset by a decrease in medical sales.
- Cost of sales:
- Q4 Fiscal 2022 cost of sales increased to $36.7 million, from
$25.9 million in Q4 Fiscal 2021, primarily as a result of the
increase in sales volume in the adult-use recreational market.
- For Fiscal 2022, cost of sales was $119.0 million, compared to
$103.6 million in the previous year.
- Gross margin before fair value changes to biological assets,
inventories sold, and other charges:
- Q4 Fiscal 2022 margin improved to $8.8 million from negative
$1.0 million in Q4 Fiscal 2021.
- In Fiscal 2022, margin improved to $26.8 million from negative
$24.4 million in Fiscal 2021. Quarterly and annual improvement were
both positively impacted by higher net revenue, lower cost of
production and a reduction in inventory provisions and unabsorbed
overhead costs.
- Adjusted gross margin5:
- Q4 Fiscal 2022 adjusted gross margin was $10.4 million, or 23%
of net revenue, compared to $3.0 million, or 12%, in Q4 Fiscal
2021.
- In Fiscal 2022, adjusted gross margin was $33.4 million, or 23%
of net revenue, compared to $3.6 million, or 5% in Fiscal
2021.
- The improvement in quarterly and annual results was largely due
to higher overall sales volumes and improved efficiency, net of the
impact of a lower average selling price.
- Selling, general & administrative (SG&A) expenses:
- Q4 Fiscal 2022 SG&A expenses increased to $15.7 million
from $12.4 million in Q4 Fiscal 2021.
- In Fiscal 2022, SG&A expenses increased to $59.8 million,
compared to $45.7 million in Fiscal 2021.
- Annual SG&A expenses as a percent of net revenue has
decreased from 57.8% to 40.9%.
- Both quarterly and annual increases were primarily due to
acquisitions and the higher spend to support the growth in the
business.
- Adjusted EBITDA6:
- Q4 Fiscal 2022 Adjusted EBITDA was $3.2 million compared to
negative $4.8 million in Q4 Fiscal 2021.
- Adjusted EBITDA was $3.5 million for Fiscal 2022, compared to
negative $27.6 million in Fiscal 2021.
- The improvement in quarterly and annual results is primarily
attributable to the increase in adjusted gross margins due to the
higher volume of products sold and lower production costs.
- Net loss:
- Q4 Fiscal 2022 net loss was $6.1 million, compared to a net
loss of $26.0 million in Q4 Fiscal 2021.
- In Fiscal 2022, net loss was $14.3 million, compared to $130.7
million in Fiscal 2021.
- The quarterly and annual decrease in net loss is primarily due
to the increased revenues, lower production costs and a decrease in
inventory provisions and unabsorbed overheads.
- Net cash used in operating activities:
- Q4 Fiscal 2022 net cash used in operating activities was $19.7
million, compared to $7.7 million in Q4 Fiscal 2021.
- In Fiscal 2022, net cash used in operating activities was $36.2
million, compared to $28.6 million in Fiscal 2021.
- The year over year increase to cash used in operating
activities is primarily due to the higher working capital needs
resulting from the growth in revenues.
The following table reconciles the Company's Adjusted EBITDA to
net income (loss).
Adjusted EBITDA Reconciliation (in $000s
unless otherwise indicated)
Q4-2022
Q4-2021
Fiscal 2022
Fiscal 2021
Net loss as reported
$
(6,144
)
$
(25,971
)
$
(14,283
)
$
(130,704
)
Add/(Deduct):
Financing costs, net of investment
income
(364
)
(286
)
(1,058
)
2,106
Income tax expense (recovery)
(299
)
—
(88
)
—
Depreciation, amortization, and (gain)
loss on disposal of property, plant and equipment (per statement of
cash flows)
7,570
17,349
31,487
33,459
Impairment of intangible assets
—
1,701
—
1,701
Impairment of property, plant and
equipment
2,245
—
4,245
—
Share of loss and impairment loss from
loan receivable and investments in associates
528
4,162
1,614
6,363
Unrealized loss (gain) on changes in fair
value of contingent consideration
317
3,392
(2,621
)
3,558
Realized loss on fair value on inventories
sold and other inventory charges
10,191
7,286
35,204
35,721
Unrealized (gain) loss on change in fair
value of biological assets
(15,677
)
(11,639
)
(40,001
)
(31,726
)
Share-based compensation (per statement of
cash flows)
2,809
1,150
5,127
3,896
COVID-19 related charges, net of
government subsidies and insurance recoveries
—
(892
)
(335
)
(8,147
)
Legal provisions
—
1,050
(310
)
2,750
Share issuance costs allocated to
derivative warrant liabilities and change in fair value of
derivative liabilities
(3,415
)
(6,001
)
(32,650
)
29,828
Incremental fair value component of
inventories sold from acquisitions
—
—
1,363
—
ERP implementation costs
1,793
—
3,203
—
Transaction costs
(188
)
—
2,384
—
Provisions and impairment of inventories
and biological assets and provisions of inventory to net realizable
value
1,600
2,619
4,546
19,904
Research and development expenditures, net
of depreciation
2,266
1,262
5,657
3,648
Adjusted EBITDA
$
3,232
$
(4,818
)
$
3,484
$
(27,643
)
The following table reconciles the Company's adjusted gross
margin to gross margin before fair value changes to biological
assets and inventories sold:
Adjusted Gross Margin Reconciliation (in
$000s unless otherwise indicated)
Q4-2022
Q4-2021
Fiscal 2022
Fiscal 2021
Net revenue
$
45,480
$
24,865
$
145,809
$
79,163
Cost of sales before adjustments
35,118
21,848
112,419
75,600
Adjusted Gross margin
10,362
3,017
33,390
3,563
Adjusted Gross margin %
23
%
12
%
23
%
5
%
Less:
Provisions (recoveries) and impairment of
inventories and biological assets
1,600
1,997
4,048
15,039
Provisions to net realizable value
—
622
498
4,865
Incremental fair value component on
inventories sold from acquisitions
—
—
1,363
Unabsorbed overhead
—
1,400
709
8,063
Gross margin before fair value
adjustments
8,762
(1,002
)
26,772
(24,404
)
Gross margin % (before fair value
adjustments)
19
%
(4
)%
18
%
(31
)%
Add/(Deduct):
Realized loss on fair value on inventories
sold and other inventory charges
(10,191
)
(7,286
)
35,204
35,721
Unrealized gain on changes in fair value
of biological assets
15,677
11,639
(40,001
)
(31,726
)
Gross margin
14,248
3,351
21,975
(20,409
)
Gross margin %
31
%
13
%
15
%
(26
)%
Canadian Recreational Market Introductions
SHRED Dankmeister XL Bong Blends
- Launched in July 2022, SHRED Dankmeister is a new offering in
the popular SHRED milled flower line up that provides a coarser
grind to suit bong and pipe smokers.
Sour Blue Razzberry
- An addition to the SHRED'ems gummy line in an electrifying sour
raspberry flavour with a 2:1 ratio of CBD to THC. There are now
eight SHRED'ems SKUs in market.
Holy Mountain
- Launched subsequent to quarter-end, HOLY MOUNTAIN, the
Company’s newest value brand, features an initial lineup of dried
flower strains along with value pressed hash. With the introduction
of HOLY MOUNTAIN, Organigram now offers value-priced flower in an
expanded range of sizes, starting with 3.5 gram offerings at
launch.
Research and Product Development
Product Development Collaboration ("PDC") and Centre of
Excellence ("CoE")
- The Organigram and BAT CoE has completed all key spaces
including the R&D Laboratories, enhanced Analytics, Quality
Assurance and Control laboratory, GPP production space, Sensory
Testing Laboratory and state-of-the-art Biolab for advanced plant
science research. The CoE has undertaken initial stage development
and safety studies on first generation edibles and novel beverages
as part of its work. As part of the development, the CoE has
created and assessed numerous delivery systems and created over 60
unique formulations to develop differentiated products in the
future.
Plant Science, Breeding and Genomics R&D in Moncton
- Organigram’s cultivation program; a key strategic advantage for
the Company has continued its expansion with the addition of a
dedicated cultivation R&D space. The new space has accelerated
rapid assessment and screening, delivering 20-30 unique cultivars
every two months while freeing up rooms for commercial grow. The
Plant Science team continues to move the garden towards unique,
high terpene and high THC, in-house grown cultivars, while also
leveraging the newly commissioned Biolab for ongoing plant science
innovation focusing on quality, potency and disease-resistance
marker discovery to enrich the future flower pipeline.
International
- In Fiscal Q4 2022, the Company completed three international
shipments totaling $6.0 million to Israel and Australia. In Fiscal
2022, seven international shipments were made for total shipped
sales of $15.4 million.
- Recent political changes and cannabis election ballot
initiatives for medical and recreational use in the United States
suggest that the potential movements to U.S. federal legalization
of cannabis (THC) remain difficult to predict. The Company
continues to monitor and develop a potential U.S. entry strategy
that could include THC, CBD and other minor cannabinoids. The
Company is also monitoring recreational legalization opportunities
in European jurisdictions based on the size of the addressable
market and recent regulatory changes with a particular focus on
Germany.
Liquidity and Capital Resources
- On August 31, 2022, the Company had unrestricted cash and
short-term investments balance of $99 million compared to $184
million at August 31, 2021. The decrease in cash of $85 million was
the result of the following: $49 million invested in capital
expenditures across three facilities, $8 million in cash
consideration towards the acquisition of Laurentian Organics Inc.
("Laurentian"), $3 million investment into Hyasynth Biologicals
with the balance related to supporting the increase in the working
capital assets.
- For Fiscal 2022 the Company has budgeted $29 million in capital
expenditures for the three facilities. This spend would relate to
the completion of the expansion at the Laurentian operations and
also include automation investments at the Winnipeg edibles and
Moncton flower facilities.
- Organigram believes its capital position is healthy and that
there is sufficient liquidity available for the near to medium
term.
Capital Structure
in $000s
AUGUST 31, 2022
AUGUST 31, 2021
Current and long-term debt
235
310
Shareholders’ equity
508,058
479,805
Total debt and shareholders’ equity
508,293
480,115
in 000s
Outstanding common shares
313,816
298,786
Options
11,051
7,797
Warrants
16,944
16,944
Top-up rights
7,590
6,559
Restricted share units
2,346
1,186
Performance share units
265
472
Total fully-diluted shares
352,012
331,744
Outstanding basic and fully diluted share count as at November
28, 2022 is as follows:
in 000s
NOVEMBER 28, 2022
Outstanding common shares
313,857
Options
11,998
Warrants
16,944
Top-up rights
8,393
Restricted share units
3,797
Performance share units
1,103
Total fully-diluted shares
356,092
Outlook7
Net revenue
- Organigram currently expects Fiscal 2023 revenue to be higher
than that of Fiscal 2022. This expectation is largely due to
ongoing sales momentum, stronger forecasted market growth, the
Company's expanded product line in multiple segments, greater
capacity to meet demand at the Moncton Campus, increased throughput
at the Winnipeg facility and contributions from the Lac-Supérieur
facility.
- In addition, the anticipated continuation of shipments to
Canndoc in Israel and Cannatrek and Medcan in Australia is expected
to generate higher sequential revenue in Fiscal 2023 as compared to
Fiscal 2022. The Company believes it is better equipped to fulfill
demand in Fiscal 2023 with larger harvests expected compared to
Fiscal 2022. In addition, on November 17, 2022, the Company entered
into a new multi-year agreement with Canndoc that contemplates
shipping up to 20,000 kilograms of dried flower.
Adjusted gross margins8
- The Company expects to see an improvement in adjusted gross
margins in Fiscal 2023 and has put measures in place that it
expects will further improve margins over time.
- The overall level of Fiscal 2023 adjusted gross margins versus
Fiscal 2022 will also be dependent on other factors, including
product category and brand sales mix.
- Organigram has identified the following opportunities which it
believes have the potential to further improve adjusted gross
margins over time:
- Economies of scale and efficiencies gained as a result of
moving from an annual capacity of 45,000 to 85,000 kilograms of dry
flower at the Moncton facility, in addition to enhanced growing and
harvesting methodologies, and design and environmental
improvements, which have resulted in higher-quality flower and
improved yields;
- Expansion of the Lac-Supérieur facility which is expected to
increase capacity for annual hash production from 1 million to over
2 million units;
- Continued investment in automation at all three sites, which
will drive cost efficiencies and reduce dependence on manual
labor;
- Revitalization of the Edison brand, including product
innovation, packaging and post harvest processing and increased
investment in building brand equity within the premium segment,
geared toward securing higher margins;
- Additional innovative product launches to support other key
brands: SHRED, Monjour, Holy Mountain and Tremblant to create new
potential avenues for growth; and
- Full-year margin contribution from the Laurentian
acquisition.
Adjusted EBITDA
- The Company expects significant growth in Adjusted EBITDA in
Fiscal 2023 over Fiscal 2022.
Cash flow
- The Company expects to have positive cash flows from operating
activities during Fiscal 2023 and positive free cash flows ("FCF")
during calendar 2023.
Fourth Quarter and Full Year Fiscal 2022 Conference
Call
The Company will host a conference call to discuss its results
with details as follows: Date: November 29, 2022 Time: 8:00 am
Eastern Time To register for the conference call, please use this
link: https://conferencingportals.com/event/RUyBPhzX
To ensure you are connected for the full call, we suggest
registering a day in advance or at minimum 10 minutes before the
start of the call. After registering, a confirmation will be sent
through email, including dial in details and unique conference call
codes for entry. Registration is open through the live call.
To access the webcast:
https://events.q4inc.com/attendee/926817268
A replay of the webcast will be available within 24 hours after
the conclusion of the call at https://www.organigram.ca/investors
and will be archived for a period of 90 days following the
call.
Non-IFRS Financial Measures
This news release refers to certain financial performance
measures (including adjusted gross margin and Adjusted EBITDA) that
are not defined by and do not have a standardized meaning under
International Financial Reporting Standards (“IFRS”) as issued by
the International Accounting Standards Board. Non-IFRS financial
measures are used by management to assess the financial and
operational performance of the Company. The Company believes that
these non-IFRS financial measures, in addition to conventional
measures prepared in accordance with IFRS, enable investors to
evaluate the Company’s operating results, underlying performance
and prospects in a similar manner to the Company’s management. As
there are no standardized methods of calculating these non-IFRS
measures, the Company’s approaches may differ from those used by
others, and accordingly, the use of these measures may not be
directly comparable. Accordingly, these non-IFRS measures are
intended to provide additional information and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. Adjusted EBITDA is a
non-IFRS measure that the Company defines as net income (loss)
before: financing costs, net of investment income; income tax
expense (recovery); depreciation, amortization, reversal of/or
impairment, (gain) loss on disposal of property, plant and
equipment (per the statement of cash flows); share-based
compensation (per the statement of cash flows); share of loss from
investments in associates and impairment loss from loan receivable;
change in fair value of contingent consideration; change in fair
value of derivative liabilities; expenditures incurred in
connection with research & development activities (net of
depreciation); unrealized (gain) loss on changes in fair value of
biological assets; realized loss on fair value on inventories sold
and other inventory charges; provisions and impairment of
inventories and biological assets; provisions to net realizable
value of inventories; COVID-19 related charges; government
subsidies; legal provisions; incremental fair value component of
inventories sold from acquisitions; transaction costs; and share
issuance costs. Adjusted EBITDA is intended to provide a proxy for
the Company’s operating cash flow and derive expectations of future
financial performance for the Company, and excludes adjustments
that are not reflective of current operating results.
Adjusted gross margin is a non-IFRS measure that the Company
defines as net revenue less cost of sales, before the effects of
(i) unrealized gain (loss) on changes in fair value of biological
assets; (ii) realized fair value on inventories sold and other
inventory charges; (iii) provisions and impairment of inventories
and biological assets; (iv) provisions to net realizable value; (v)
COVID-19 related charges; and (vi) unabsorbed overhead relating to
underutilization of the production facility and equipment, most of
which is related to non-cash depreciation expense. Management
believes that this measure provide useful information to assess the
profitability of our operations as it represents the normalized
gross margin generated from operations and excludes the effects of
non-cash fair value adjustments on inventories and biological
assets, which are required by IFRS.
The most directly comparable measure to Adjusted EBITDA,
calculated in accordance with IFRS is net income (loss) and
beginning on page 4 of this press release is a reconciliation to
such measure. The most directly comparable measure to adjusted
gross margin calculated in accordance with IFRS is gross margin
before fair value changes to biological assets and inventories sold
and beginning on page 5 of this press release is a reconciliation
to such measure.
About Organigram Holdings Inc.
Organigram Holdings Inc. is a NASDAQ Global Select Market and
TSX listed company whose wholly-owned subsidiaries include
Organigram Inc. and Laurentian Organic Inc. licensed producers of
cannabis and cannabis-derived products in Canada, and The Edibles
and Infusions Corporation, a licensed manufacturer of
cannabis-infused edibles 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 Edison, Big Bag O’ Buds, SHRED, Monjour and Trailblazer.
Organigram operates facilities in Moncton, New Brunswick and
Lac-Supérieur, Québec, with a dedicated manufacturing facility in
Winnipeg, Manitoba. The Company is regulated by the Cannabis Act
and the Cannabis Regulations (Canada).
This news release contains forward-looking information.
Forward-looking information, in general, can be identified by the
use of forward-looking terminology such as “outlook”, “objective”,
“may”, “will”, “could”, “would”, “might”, “expect”, “intend”,
“estimate”, “anticipate”, “believe”, “plan”, “continue”, “budget”,
“schedule” or “forecast” or similar expressions suggesting future
outcomes or events. They include, but are not limited to,
statements with respect to expectations, projections or other
characterizations of future events or circumstances, and the
Company’s objectives, goals, strategies, beliefs, intentions,
plans, estimates, forecasts, projections and outlook, including
statements relating to the Company’s future performance, the
Company’s positioning to capture additional market share and sales
including international sales, expectations for consumer demand,
expected increase in SKUs, expected improvement to gross margins
before fair value changes to biological assets and inventories,
expectations regarding adjusted gross margins, Adjusted EBITDA and
net revenue in Fiscal 2023 and beyond, expectations regarding
cultivation capacity, the Company’s plans and objectives including
around the CoE, availability and sources of any future financing,
expectations regarding the impact of COVID-19, availability of cost
efficiency opportunities, the increase in the number of retail
stores, the ability of the Company to fulfill demand for its
revitalized product portfolio with increased staffing, expectations
relating to greater capacity to meet demand due to increased
capacity at the Company’s facilities, expectations around lower
product cultivation costs, the ability to achieve economies of
scale and ramp up cultivation, expectations pertaining to the
increase of automation and reduction in reliance on manual labour,
expectations around the launch of higher margin dried flower
strains, expectations around market and consumer demand and other
patterns related to existing, new and planned product forms
including by EIC and Laurentian; timing for launch of new product
forms, ability of those new product forms to capture sales and
market share, estimates around incremental sales and more generally
estimates or predictions of actions of customers, suppliers,
partners, distributors, competitors or regulatory authorities;
continuation of shipments to Canndoc Ltd., Cannatrek Ltd. and
Medcan; statements regarding the future of the Canadian and
international cannabis markets and, statements regarding the
Company’s future economic performance. These statements are not
historical facts but instead represent management beliefs regarding
future events, many of which, by their nature are inherently
uncertain and beyond management control. Forward-looking
information has been based on the Company’s current expectations
about future events.
This news release contains information concerning our industry
and the markets in which we operate, including our market position
and market share, which is based on information from independent
third-party sources. Although we believe these sources to be
generally reliable, market and industry data is inherently
imprecise, subject to interpretation and cannot be verified with
complete certainty due to limits on the availability and
reliability of raw data, the voluntary nature of the data gathering
process, and other limitations and uncertainties inherent in any
statistical survey or data collection process. We have not
independently verified any third-party information contained
herein.
Forward-looking information involves known and unknown risks,
uncertainties and other factors that may cause actual events to
differ materially from current expectations. These risks,
uncertainties and factors include: the heightened uncertainty as a
result of COVID-19, including any continued impact on production or
operations, impact on demand for products, effect on third party
suppliers, service providers or lenders; general economic factors;
receipt of regulatory approvals or consents and any conditions
imposed upon same and the timing thereof; the Company's ability to
meet regulatory criteria which may be subject to change; change in
regulation including restrictions on sale of new product forms;
change in stock exchange listing practices; the Company's ability
to manage costs, timing and conditions to receiving any required
testing results and certifications; results of final testing of new
products; timing of new retail store openings being inconsistent
with preliminary expectations; changes in governmental plans
including those related to methods of distribution and timing and
launch of retail stores; timing and nature of sales and product
returns; customer buying patterns and consumer preferences not
being as predicted given this is a new and emerging market;
material weaknesses identified in the Company’s internal controls
over financial reporting; the completion of regulatory processes
and registrations including for new products and forms; market
demand and acceptance of new products and forms; unforeseen
construction or delivery delays including of equipment and
commissioning; increases to expected costs; competitive and
industry conditions; change in customer buying patterns; and
changes in crop yields. These and other risk factors are disclosed
in the Company's documents filed from time to time under the
Company’s issuer profile on the Canadian Securities Administrators’
System for Electronic Document Analysis and Retrieval (“SEDAR”) at
www.sedar.com and reports and other information filed with or
furnished to the United States Securities and Exchange Commission
(“SEC”) from time to time on the SEC’s Electronic Document
Gathering and Retrieval System (“EDGAR”) at www.sec.gov, including
the Company’s most recent MD&A and AIF. Readers are cautioned
not to place undue reliance on these forward-looking statements,
which speak only as of the date of this news 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. Forward looking information is subject to risks and
uncertainties that are addressed in the “Risk Factors” section of
the MD&A dated November 28, 2022 and there can be no assurance
whatsoever that these events will occur.
_______________________________ 1 Adjusted gross margin and
Adjusted EBITDA are non-IFRS financial measures not defined by and
do not have any standardized meaning under IFRS; please refer to
“Non-IFRS Financial Measures” in this press release for more
information. 2 Hifyre data extract from October 18, 2022 3 OCS
wholesale sales and e-commerce orders shipped data: Q4 FY 22 and
Provincial Boards Data: CNB, NSLC, PEILCC, Q4 FY ‘22 4 Weedcrawler,
FY22 5 Adjusted gross margin is a non-IFRS financial measure not
defined by and does not have any standardized meaning under IFRS;
please refer to “Non-IFRS Financial Measures” in this press release
for more information. 6 Adjusted EBITDA is a non-IFRS financial
measure not defined by and does not have any standardized meaning
under IFRS; please refer to “Non-IFRS Financial Measures” in this
press release for more information. 7 The disclosure in this
section is subject to the risk factors referenced in the “Risk
Factors” section of the Company’s Q4 Fiscal 2022 MD&A, which is
available in the Company's profile at www.sedar.com. Without
limiting the generality of the foregoing, the expectations
concerning revenue, adjusted gross margins and SG&A are based
on the following general assumptions: consistency of revenue
experience with indications of fourth quarter performance to date,
consistency of ordering and return patterns or other factors with
prior periods and no material change in legal regulation, market
factors or general economic conditions. The Company disclaims any
obligation to update any of the forward-looking information except
as required by applicable law. See cautionary statement in the
“Introduction” section at the beginning of the Company’s Fiscal
2022 MD&A. 8 Adjusted gross margin is a non-IFRS financial
measure not defined by and does not have any standardized meaning
under IFRS; please refer to “Non-IFRS Financial Measures” in this
press release for more information.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221128005806/en/
For Investor Relations enquiries, please contact:
investors@organigram.ca For Media enquiries, please contact:
Paolo De Luca, Chief Strategy Officer
paolo.deluca@organigram.ca
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