05:53:30 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



Organigram Holdings Inc
Symbol OGI
Shares Issued 89,330,889
Close 2016-11-29 C$ 3.10
Market Cap C$ 276,925,756
Recent Sedar Documents

Organigram finishes designing production plant addition

2016-11-30 06:52 ET - News Release

Mr. Denis Arsenault reports

ORGANIGRAM COMPLETES SITE DESIGN FOR ANNUAL PRODUCTION OF 26,000 KG

Organigram Holdings Inc. has completed the design work related to a proposed addition to the on-site production building located at 35 English Dr. in Moncton, N.B. The preliminary design and drawings provide sufficient additional space to facilitate incremental production capacity of approximately 9,000 kilograms per year. When combined with the previously announced and continuing expansions to both buildings, this new addition brings the total proposed production capacity at Organigram to approximately 26,000 kg per year.

"The management team at Organigram appreciates the hard work and dedication of our construction and design team. We are very fortunate to have picked this location for our business and to be on a site with previously existing infrastructure that is significantly scalable. This makes construction quicker, less expensive and permits us to increase our production capacity much sooner than many of our peers," said Denis Arsenault, chief executive officer. "Our focus as an executive team is on capturing economies of scale through cost-efficient expansion, developing our unique portfolio of brands, and exercising prudence and discipline with our cash flow management. We believe these commitments and the corresponding financial results are important differentiators for Organigram."

The company anticipates that construction can be completed concurrently with the previously announced plans and that production rooms can be ready for harvest by the early spring of 2018; a time the company believes having sufficient supply will be critical. Costs related to this expansion are anticipated to be fully financed with the company's existing cash on hand and with the proceeds from the recently announced $35-million bought-deal financing, which is expected to close on or about Dec. 7, 2016.

"This amendment to our expansion plans represents another strategic building block supporting Organigram with the resources and capacity required to capitalize on future opportunities in the cannabis marketplace. Looking forward from a strategic perspective, this expansion provides Organigram with the scale to take full advantage of our recently announced agreements with the Trailer Park Boys and The Green Solution of Colorado," said Ray Gracewood, chief commercial officer. "Our plan should result in Organigram having one of the highest production capacities in the industry; and we intend to leverage this capacity and use our relationships to develop the brands and products that narrate the recreational marketplace."

About Organigram Holdings

Organigram's 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, N.B., and the company is regulated by the access to cannabis for medical purposes regulations (ACMPR).

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