Ms. Beena Goldenberg reports

ORGANIGRAM APPLAUDS THE STANDING COMMITTEE ON FINANCE'S RECOMMENDATION ON EXCISE DUTY

Organigram Holdings Inc. enthusiastically supports the Standing Committee on Finance's recent recommendation on the excise duty framework.

In a recently released report, titled "Shaping our Economic Future: Canadian Priorities," the House of Commons Standing Committee on Finance has unanimously recommended adjusting the excise duty formula for cannabis so that it is limited to a 10-per-cent ad valorem rate, and modifying the duty's operation, including applying excise stamps on cannabis products.

Based on a survey conducted by the Cannabis Council of Canada, licensed producers currently pay up to 35 per cent of top-line revenue in excise duties because of an erroneous assumption at the time of legalization that the price of cannabis flower would be approximately $10 per gram to the retail consumer. In reality, the price per gram of cannabis flower has fallen to as low as approximately $3 per gram, limiting cannabis companies' ability to remain competitive on pricing, invest in innovation, retain jobs, and ultimately support the government's stated objectives of illicit market conversion and promoting public health and safety.

"The prebudget recommendation could not have come at a better time," said Beena Goldenberg, chief executive officer of Organigram. "Excise reform is critical to the long-term viability of the Canadian cannabis industry. The positive impact of the proposed reduction to a 10-per-cent ad valorem rate on the sustainability of the sector cannot be underestimated. We sincerely hope that the recommendation made by the finance committee is adopted by the federal, provincial and territorial governments so that Canada can retain its position as global leader in the emerging cannabis movement.

"We are also encouraged by recent reports indicating that the CRA [Canada Revenue Agency] is taking pro-active measures to level the playing field by collecting more diligently from LPs who have fallen behind on their remittances for excise duties."

About Organigram Holdings Inc.

Organigram Holdings' 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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