Mr. Borna Zlamalik reports

ORGANIGRAM INCREASES INVESTMENT IN PHYLOS AFTER SUCCESSFUL MILESTONE ACHIEVEMENT

Phylos Bioscience Inc., a U.S. cannabis genetics company and provider of production-ready seeds, has achieved the first milestone under the loan agreement entered into in May, 2023, and has closed the second tranche under the loan agreement with Organigram Holdings Inc. advancing $2.75-million (U.S.) to Phylos. This second tranche follows the initial tranche of $3.25-million (U.S.) advanced in May, 2023, for a total of $6-million (U.S.) in senior secured convertible loans currently outstanding.

Organigram's continuing trials using Phylos technology have resulted in highly uniform, predictable and fast-growing seedlings.

The milestone achieved so far consists of:

• 1:1 THCV (tetrahydrocannabivarin) cultivar at over 10-per-cent THCV potency -- delivered;
• 3:1 THCV cultivar at target 18 per cent THCV (16-per-cent minimum) -- delivered;
• Two THC (tetrahydrocannabinol) aroma-specific cultivars (in either berry, citrus or gas) -- four delivered to date.

"We have always strived to be at the forefront of innovation through our commitment to scientific excellence and rigorous research. Our investment in Phylos was driven by that commitment, and we are thrilled with the progress we have made and the benefits we are reaping from this strategic investment," says Borna Zlamalik, senior vice-president, research and development and innovation, at Organigram. "To further expand and capitalize on this investment in Phylos, we are preparing the development of additional breeding programs which aim to deliver a suite of high-potency minor cannabinoid flower to complement the THCV flower, with a focus on key rare cannabinoids such as CBG, CBC, CBDV and THCP," he added.

In August, Organigram launched its first lineup of whole-flower-derived THCV products through the company's popular Shred and newly relaunched Trailblazer brands enabled by the strategic investment in Phylos.

Convertible loan details

After financing the second tranche, $6-million (U.S.) of principal is outstanding and the loan agreement contains a commitment to finance up to an additional $2-million (U.S.) no later than May, 2025, upon the completion of certain milestones.

The convertible loans will accrue paid-in-kind interest (PIK) at a rate of U.S. prime plus 3.5 per cent (with an overall cap of 11 per cent) subject to certain conditions. The maturity date of the convertible loans will be on the fifth anniversary of the initial closing date subject to one-year extensions and subject to certain conditions. The convertible loans' principal and PIK interest outstanding are convertible into common share equity of Phylos under certain circumstances (including but not limited to federal legalization or decriminalization of cannabis in the United States).

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 its 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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