Ms. Beena Goldenberg reports

ORGANIGRAM REPORTS FIRST QUARTER FISCAL 2024 RESULTS

Organigram Holdings Inc. has released its results for the first quarter ended Dec. 31, 2023.

"We certainly kicked off fiscal 2024 with a bang", said Beena Goldenberg, Chief Executive Officer. "By closing the first tranche of our $124.6 million follow-on investment from BAT shortly after quarter end, we have removed a significant amount of risk from our business while enhancing the key competitive advantages that our team worked diligently to put into place in Fiscal 2023. We can now fully leverage our world-class facilities, market leadership in several categories, and cutting-edge research and development capabilities to increase Organigram's reach both within the Canadian market and beyond."

Canadian Recreational Market Introduction Highlights

As an industry leader and pure-play cannabis company, Organigram remains committed to delivering consumer focused innovations and products to the Canadian market. Q1 Fiscal 2024 saw the introduction of 22 new SKUs to the market for Organigram. Some notable highlights include:

Holy Mountain Ultra Jean G (28g) - A new sour sativa in a 1 oz. bag

SHRED Dartz Dessert Storm tube-style pre-rolls - A new flavour in 10 x 0.4g tube-style pre-rolls

SHRED X Mother Pucker Peach Rip-Strip Hash - A new Rip-Strip flavour packed with peach

Holy Smokes Purple Punch Out! tube-style pre-rolls - A new strain boasting up to 26% THC

Trailblazer Hustle n' Haze THCV pre-rolls - The first pre-roll high in THCV blended with THC

Research and Product Development

Product Development Collaboration ("PDC") and Centre of Excellence ("CoE")

Organigram and BAT continue to work together through their 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 launch priority includes gummies which will feature a new nano-emulsion technology

The PDC has completed pharmacokinetic studies regarding the onset and half-life of nano-emulsion gummies, and is now analyzing results to substantiate claims

Follow-on Strategic Investment from BAT and creation of the Jupiter Investment Pool

In March of 2021, BAT invested ~$221 million into Organigram which has served to propel product innovations resulting from CoE at Organigram's Moncton facility

On November 6, 2023 Organigram announced a $124.6 million follow-on investment from BAT and the creation of Jupiter, a strategic investment pool designed to expand Organigram's geographic footprint and capitalize on emerging growth opportunities

In January 2024, Organigram shareholders voted to approve the $124.6 million investment from BAT and the Company completed the first of three tranches of the investment for proceeds of $41.5 million

Strategic Investment in Green Tank Technologies Corp. ("Greentank")

In Fiscal 2023, Organigram announced that it had entered into a product purchase agreement (the "Purchase Agreement") with Greentank, a leading vaporization technology company, and a subscription agreement with Greentank's parent company, Weekend Holdings Corp. ("WHC"). The Purchase Agreement provides Organigram with an exclusivity period in Canada for the new technology incorporated into 510 vape cartridges (along with other formats) for use with cannabis, including the development of a custom all-in-one device that will be proprietary to Organigram.

Subsequent to quarter end, the first Greentank enabled vapes shipped to market

Strategic Investment in Phylos

On May 25, 2023, Organigram announced its first strategic U.S. investment in Phylos, a cannabis genetics company and provider of production ready seeds, based in Portland, Oregon, to initiate a wide-ranging technical and commercial relationship in Canada. Under the terms of the agreement, Organigram will advance up to US $8 million to Phylos in three tranches structured as a secured convertible loan

In November 2023, due to the achievement of THCV concentration and aroma specific milestones for F1 seeds, Organigram advanced the second tranche of US$2.75 million to Phylos for a total current investment of US$6.0 million in senior secured convertible loans

In Q1 Fiscal 2024, the Company completed planting its first seed-based production grow room

International

In Q1 Fiscal 2024, the Company reported international shipments totaling $1.0 million to Australia

Subsequent to quarter end, the Company completed its first export to the German medical market

The Company is evaluating international expansion opportunities propelled by the Jupiter strategic investment pool resulting from BAT's $124.6 million strategic investment announced in November 2023

Liquidity and Capital Resources

On December 31, 2023, the Company had unrestricted cash of $41.8 million and restricted cash of $12.8 million for a total of $54.6 million

In January 2024, Organigram closed the first of three tranches from BAT's follow-on $124.6 million strategic investment for proceeds of $41.5 million. 50% of the first tranche will be allocated to general corporate purposes and 50% will be allocated toward Jupiter

Key Financial Results for the First Quarter 2024

Net revenue:

Compared to the prior period, net revenue decreased 16% to $36.5 million, from $43.3 million in Q1 Fiscal 2023. The decrease was primarily due to a reduction in international revenue and medical sales

Cost of sales:

Q1 Fiscal 2024 cost of sales decreased to $26.9 million, from $31.6 million in Q1 Fiscal 2023, primarily due to lower sales including decreased international sales and lower cultivation and post-harvest costs

Gross margin before fair value changes to biological assets, inventories sold, and other charges:

Q1 Fiscal 2024 margin declined to $9.5 million from $11.7 million in Q1 Fiscal 2023, negatively impacted in the quarter by lower net revenue, and $1.7 million in inventory provisions versus $1.1 million in the same prior year period

Adjusted gross margin4:

Q1 Fiscal 2024 adjusted gross margin was $11.2 million, or 31% of net revenue, compared to $12.8 million, or 30%, in Q1 Fiscal 2023. The increase in the adjusted gross margin rate was primarily due to a decrease in depreciation

Adjusted gross margin improved sequentially to 31% from 17% in Q4 Fiscal 2023

Selling, general & administrative (SG&A) expenses:

Q1 Fiscal 2024 SG&A expenses increased to $16.5 million from $15.7 million in Q1 Fiscal 2023. The increase in expenses was primarily due to higher foreign exchange losses on foreign-currency denominated receivables and higher professional fees related to the BAT investment

Net (Loss) Income:

Q1 Fiscal 2024 net loss was $(15.8) million compared to a net income of $5.3 million in Q1 Fiscal 2023 as a result of lower gross margin due to the change in fair value of biological assets

Adjusted EBITDA5:

Q1 Fiscal 2024 Adjusted EBITDA was $0.1 million compared to $5.6 million adjusted EBITDA in Q1 Fiscal 2023. The decline is primarily attributed to lower international shipments, and higher SG&A expenses

Adjusted EBITDA improved sequentially by $2.5 million from $(2.4) million in Q4 Fiscal 2023

Net cash (used in) provided by operating activities before working capital changes:

Q1 Fiscal 2024 net cash provided by operating activities was $7.7 million, compared to $3.5 million cash provided in Q1 Fiscal 2023, which was primarily due to favorable changes in working capital, partially offset by lower Adjusted EBITDA

"Our results for the first quarter of Fiscal 2024 demonstrate improvements on multiple fronts," added Greg Guyatt, Chief Financial Officer. "Our improved adjusted gross margin and Adjusted EBITDA on a sequential quarter-over-quarter basis were driven by the refinement of newly enhanced production processes for ready-to-consume products resulting from the $29 million in facility enhancements we completed in Fiscal 2023, the highly successful reintroduction of our patented Edison JOLTS to the market, and improved margin profiles in several product categories. In December 2023, we had a record breaking month in shipped recreational sales, stemming from consistent market share gains throughout Q1 Fiscal 2024."

Outstanding basic and fully diluted share count as at February 12, 2024 is as follows:

First Quarter Fiscal 2024 Conference Call

The Company will host a conference call to discuss its results with details as follows:

Date: February 13, 2024

Time: 8:00 am Eastern Time

To register for the conference call, please use this link:

https://registrations.events/direct/Q4I967666846597333509997000

To ensure you are connected for the full call, we suggest registering a day in advance or at minimum 10 minutes before the start of the call. After registering, a confirmation will be sent through email, including dial in details and unique conference call codes for entry. Registration is open through the live call.

To access the webcast:

https://events.q4inc.com/attendee/225832868

A replay of the webcast will be available within 24 hours after the conclusion of the call at https://www.organigram.ca/investors and will be archived for a period of 90 days following the call.

About Organigram Holdings Inc.

Organigram Holdings Inc. is a NASDAQ Global Select Market and TSX listed company whose wholly-owned subsidiary, Organigram Inc., is a licensed producers of cannabis and cannabis-derived products in Canada.

Organigram is focused on producing high-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 Edison, Holy Mountain, Big Bag O' Buds, SHRED, Monjour and Trailblazer. Organigram operates facilities in Moncton, New Brunswick and Lac-Superieur, Quebec, with a dedicated manufacturing facility in Winnipeg, Manitoba. The Company is regulated by the Cannabis Act and the Cannabis Regulations (Canada).

We seek Safe Harbor.