Ms. Beena Goldenberg reports

ORGANIGRAM PROVIDES CORPORATE UPDATE

Organigram Holdings Inc. has provided a corporate update.

Market share momentum

Market share continues to be an important indicator of success for licensed producers (LPs) in Canada as sell-through to consumers is a strong predictor of long-term sustainable revenue. Organigram is pleased to announce that it has moved into the No. 2 market share position in the last two months driven in large part by the success of its growing preroll business. Market share strength has also been buoyed with strength in gummies, hash and flower.

Category leadership supported by recent product innovations and launches

Organigram is pleased to announce that is has achieved a category leadership position in two growing categories: hash and gummies. The company achieved the No. 1 market share position in hash globally as of November, 2022, driven by innovative product launches on Tremblant, Holy Mountain and Shred, including yet another first-to-market innovation, the ultraconvenient and flavourful Rip-Strips. Organigram has also secured the No. 1 market share position in gummies for the last two months, August and September. This impressive growth is driven by the company's continued success in launching new flavours and cannabinoid ratios, including THCV (tetrahydrocannabivarin), under its popular Shred'ems and Monjour gummy brands.

"Organigram is committed to maintaining its focus on being a consumer-centric and disciplined cannabis company. The success we are experiencing in these categories is a testament to our approach to investing, by making strategically sound acquisitions that are complementary to our core flower business, enabling us to capitalize on the new, growing segments in Canadian cannabis and focusing our efforts on winning in that segment," said Beena Goldenberg, chief executive officer of Organigram.

Exciting new product launches

Organigram continues its commitment to bringing high-quality cannabis products to the market that meet the evolving needs of its various consumer segments, from the price-conscious, experienced user, to the more wellness-oriented individual looking to fulfill targeted needs through cannabis.

Product development collaboration with BAT

Organigram and BAT continue to work together through their product development collaboration (PDC) on new workstreams to develop innovative technologies in the edible, vape and beverage categories in addition to new disruptive inhalation formats aimed at addressing the biggest consumer pain points that exist in the category today.

Organigram is preparing to deliver new products in these spaces and the immediate launch priority includes gummies which will feature a new nanoemulsion technology, scheduled to begin commercialization in the first half of 2024.

Investment and collaboration with United States-based Phylos Biosciences

Monetizing the investment in Phylos Bioscience continues to be a key focus as Organigram moves toward seed-based production in its Moncton facility. Three seed trials have already been harvested with two more nearing completion. Over all, eight F1 Hybrid cultivars are being tested with the first production-scale trial room load scheduled in November, 2023, and first full-scale commercial harvest planned for March, 2024. Organigram is on track to convert up to 30 per cent of harvests to seed-based production by end of 2024 with Phylos investment milestones tracking toward early completion.

Moncton facility updates

The company is pleased to have been designated an Energy Champion by New Brunswick Power as a result of the reduction in its environmental footprint through the conversion of 17,000 LED (light-emitting diode) fixtures. With this change, Organigram's energy footprint per room was reduced by 30 per cent. The company also continues to reduce its energy usage through a partnership with NB Power in the New Brunswick Strategic Energy Management Program.

Finally, Organigram commissioned its high-speed preroll tube-style machine in June, enabling the company to enter the growing tube-style preroll joint segment with its popular Shred and Holy Mountain brands. This investment in automated preroll technology has helped Organigram secure the No.2 position in the category.

Lac Superieur facility update

Construction at Organigram's Lac Superieur craft cultivation facility is now complete with the addition of four new grow rooms and an expanded packaging area. With power at the facility, equipment commissioned, and all growing, harvesting and drying rooms being completed, Organigram is now in a position to begin growing top-shelf, craft-quality, small-batch flower out of its signature craft facility. Clones are now on site, and Organigram expects to see the first harvest out of that facility by early December.

Organigram has also finished the implementation of its new ERP (enterprise resource planning) system at Lac Superieur, which is expected to provide the most up-to-date, accurate and timely data needed to deliver actionable business insights.

Change in fiscal year

As previously disclosed, Organigram has recently changed its fiscal year-end to better reflect its operating and financial cycles. Organigram's new fiscal year began on Oct. 1, 2023, and will end on Sept. 30, 2024. As a result, fiscal year 2023 will have 13 months and reflect the period starting Sept. 1, 2022, and ending Sept. 30, 2023. The company will announce its full-year fiscal 2023 earnings in December, 2023.

About Organigram Holdings Inc.

Organigram Holdings is a Nasdaq Global Select Market- and Toronto Stock Exchange-listed company whose wholly owned subsidiaries include Organigram Inc., a licensed producer of cannabis, cannabis-derived products and cannabis-infused edibles in Canada.

Organigram is focused on producing high-quality cannabis for patients and adult recreational consumers, as well as developing international business partnerships to extend the company's global footprint. Organigram has also developed and acquired a portfolio of legal adult-use recreational cannabis brands, including Edison, Holy Mountain, Big Bag O' Buds, Shred, Shred'ems, Monjour, Laurentian, Tremblant Cannabis and Trailblazer. Organigram operates facilities in Moncton, N.B., and Lac-Superieur, Que., with a dedicated edibles manufacturing facility in Winnipeg, Man. The company is regulated by the Cannabis Act and the Cannabis Regulations (Canada).

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