- Pre-roll production milestone allows Organigram to establish a
leading market presence
- Phase 4 facility expansion continues, will add 91 incremental
grow rooms in stages
before the end of calendar 2019
- Additional grow rooms will more than triple target annual
production capacity to 113,000 kg once complete
- Moncton Campus producing
high-quality indoor-grown product at low cash cost of cultivation
(non-IFRS measure) of $0.56 per
gram
MONCTON, NB, Jan. 31, 2019 /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 has reached – and already surpassed – the production of
one million cannabis pre-rolls since the legalization of adult use
recreational cannabis in October
2018. The Company credits the automation of its processes
along with surging consumer demand for the success of its
large-scale production.
"At Organigram, we are proud to be among a select group of
licensed producers who have been able to rise to the challenge of
large-scale pre-roll production," says Greg
Engel, CEO, Organigram. "Our operations team has done an
amazing job introducing automation to important parts of our
process, building our overall capacity while retaining our focus on
product quality."
A national player in Canada's
burgeoning cannabis industry, with supply agreements in every
province except Quebec, Organigram
has been able to identify opportunities for both production
innovation and efficiencies to help ensure the Company delivers a
consistent supply of high-quality products to customers across the
country.
To date, very few licensed producers have been able to supply
the market with dried cannabis pre-rolls which are in very high
demand, which makes the one million pre-rolled cannabis products
milestone even more impressive.
Approaching legalization, the Company expected demand for
cannabis pre-rolls to be in line with other regulated markets at
approximately 10 per cent, although sales to this point have
surpassed that due to high customer demand and industry
under-supply. To this point, pre-rolled products represent
approximately 12 per cent of all Organigram gross sales. Organigram
currently supplies Edison Cannabis and Trailblazer 0.5g pre-rolls
to nine provinces from coast to coast.
"We take our commitments to our partners and customers very
seriously," says Engel. "Through an aggressive but highly
actionable growth strategy, meaning that with the expansion of our
team, its expertise and our facility, we are on track to deliver on
our strategic promises."
Expansion Update
In anticipation of continued growing
demand both nationally and globally, Organigram continues the
expansion of its Moncton Campus
located in New Brunswick. The
expansion allows for both increased production and onsite research
and development.
Phase 4A, currently underway, will offer the Organigram team 31
new grow rooms and a new mechanical room. As the Company's Phase 4A
construction progresses, Phase 4B
construction also begins to take shape with 32 new grow rooms.
Phase 4C will follow with 29 new grow rooms.
Upon completion Phase 4 will house:
- Nine chillers producing 4,750 tons of cooling
- 48 pumps providing 1,500 HP and 45,000 gallons per minute
- 30,000 feet of carbon steel pipe in mechanical room and
distribution
- 36,000 feet of irrigation drainage lines
- 38,000 feet of main irrigation lines
- 450,000 feet of drip irrigation tubing
The full planned build of Phase 4 represents more than
$120 million in capital
investment.
"We want Organigram's products to be the first choice for
Canadians when it comes to selecting high quality cannabis products
they enjoy and trust," explains Engel. "Our efforts to innovate and
grow, the investment we continue to make in industry-leading
research, and the products we develop for both our medical and
adult recreational use customers, all reflect this continuous and
non-negotiable priority. We take the Edison Cannabis mantra
seriously when we say our intentions are to Explore, Create,
Innovate and Never Stop Growing."
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, the CSE 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 changes impacting
consumer demand, production capacity and competition 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. We seek safe harbor.
SOURCE OrganiGram