MONCTON, NB, Jan. 21, 2019 /CNW/ - A class action was
certified against Organigram Inc. (the "Company" or "Organigram")
and its parent company Organigram Holdings Inc. (TSX VENTURE: OGI)
(OTCQX: OGRMF), a leading licensed producer of cannabis in
Canada, on Friday, January 18, 2019.
Certification is not a decision on the merits of the lawsuit,
but simply deals with the proper procedure for a lawsuit, which
allows it to continue to the next stage. The Company is reviewing
the decision to determine whether it will appeal. The Company
intends to vigorously defend itself against this class action.
The lawsuit was filed with the Supreme Court of Nova Scotia on behalf of class members who
purchased medical cannabis that was the subject of the Company's
voluntary product recalls in December
2016 and January 2017.
The lawsuit deals with the reimbursement of funds paid for the
cannabis purchased by medical customers in 2016. Organigram has
already voluntarily reimbursed many of its customers for this
recall via a comprehensive credit and refund program. Organigram
has insurance to cover the cost of legal fees associated with the
defense of the class action. Insurance coverage may also cover some
or all of any monetary damages associated with any resolution of
this matter. While the ultimate outcome of any Court process
is difficult to ascertain, Organigram management does not
anticipate that the class action (including the resolution thereof)
will impact its business or operations in any material manner.
Some of that cannabis subject to the Company's voluntary product
recalls in December 2016 and
January 2017 contained trace elements
of one or two pesticides not approved for use by Licensed
Producers. The lawsuit also contains allegations of adverse health
effects from the product. The Court noted that it will be up
to the plaintiffs to prove that trace elements of these pesticides
can cause any adverse health effects and if so, it will be up to
each individual to prove that the alleged health effects were
actually caused by the cannabis. Health Canada issued the following
clarification in Health Canada
on myclobutanil and cannabis, on March
9, 2017:
"Here are the facts. When the cannabis plant is combusted, a
number of compounds are produced, including very low amounts of
hydrogen cyanide. Health Canada's
analysis of the recalled cannabis products show that the trace
levels of myclobutanil that were present would have produced a
negligible amount of additional hydrogen cyanide upon combustion,
in comparison to the levels already produced by marijuana alone.
Specifically, the level of cyanide from the burning of myclobutanil
found on the cannabis samples is more than 1000 times less than the
cyanide in cannabis smoke alone, and is 500 times below the
acceptable level established by the U.S. National Institute for
Occupational Safety and Health. As such, the risk of serious
adverse health consequences resulting from the inhalation of
combusted myclobutanil in the recalled cannabis products was
determined by Health Canada to be low."
Source:
https://www.canada.ca/en/health-canada/news/2017/03/clarification_fromhealthcanadaonmyclobutanilandcannabis.html
Organigram's Commitment to Quality
Every day, the Organigram team earns customers' confidence and
trust through the production of high quality products. Since the
voluntary product recall, the Company has worked diligently to
incorporate the seven critical steps that were communicated as a
result of the Company's internal review process, found at
www.organigram.ca/safety:
- 100% of the product sold by Organigram undergoes comprehensive
testing for pesticides at a third-party, Health Canada approved
laboratory;
- Results of this testing via a Certificate of Analysis is
provided with each order to provincial and private retailers across
Canada;
- As part of the Company's ongoing commitment to patient safety,
registered Organigram patients have access to the Certificates of
Analysis for all product available for sale on the Company's
website;
- Oranigram has also incorporated a robust vetting process for
all external suppliers;
- The Company conducts regular spot-checks on all incoming
materials;
- Oranigram has also implemented a robust security process
supported with full video monitoring ability; and
- The Company has developed a comprehensive training and
onboarding process for all new members of the Organigram
team.
As a result of these enhancements, the Company has quickly
evolved into a leader in product quality, as evidenced by winning
'Best Sativa' at the 2017 Canadian Cannabis Awards. The
Company continues to work on process enhancements and innovations
with an unwavering focus on product quality, most recently
demonstrated by being the first Canadian licensed producer to
include humidity control units in all pack sizes of dried flower
for both adult recreational use consumers and medicinal
patients.
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. Organigram has also developed a portfolio of legal adult
use recreational cannabis 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 Cannabis Act and the Cannabis
Regulations (Canada).
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 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