Organigram Receives Health Canada Approval to Bring Total Licensed Production Capacity to Target of 76,000 kg/yr1
September 09 2019 - 6:00AM
Business Wire
Facility Expansion Remains on Schedule to
Increase Capacity and Further Improve Efficiencies of Scale
Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI), the parent
company of Organigram Inc. (the “Company” or “Organigram”), a
leading licensed producer of cannabis, is pleased to announce that
effective September 6, 2019 it has received Health Canada’s
approval for the licensing of 17 additional cultivation rooms under
the Cannabis Regulations.
The new cultivation rooms represent approximately 15,000 kg/yr1
of increased target production capacity. These are the first 17
rooms licensed within the Company’s Phase 4B expansion and now
brings the Company’s Moncton facility to annualized licensed
capacity to a target of 76,000 kg1.
The licenses are valid until March 27, 2020 and subject to terms
and conditions.
“Once again, we are pleased to receive licensing approval
consistent with our expectations and the streamlined process we
have experienced to date. Our Phase 4 facility expansion remains on
schedule to meet growing demand and further contribute to
efficiencies of scale,” explains Greg Engel, CEO, Organigram.
As a result of this approval, cannabis plants will be moved into
these new rooms on a rolling basis commencing immediately. The
Company anticipates harvesting product from these new rooms by the
end of November assuming normal cultivation timelines. After drying
and other post-harvest processing (including packaging) dried
flower from these additional rooms is expected to be available for
sale to patients and customers in the Company’s fiscal quarter
ending February 29, 2020.
Substantial construction of the entire Phase 4B stage remains on
schedule for completion in September 2019 and the Company also
anticipates submitting the licensing amendment for the remaining 16
Phase 4B cultivation rooms later this month.
The perimeter of Phase 5 of the Company’s expansion, which will
include an edibles and derivative product facility and more
extraction capacity, is also planned for this Health Canada
licensing submission.
About Organigram Holdings Inc.
Organigram Holdings Inc. is a NASDAQ Global Select and TSX
listed company whose wholly owned subsidiary, Organigram Inc., is a
licensed producer 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
The Edison Cannabis Company, Ankr Organics, Trailer Park Buds and
Trailblazer. Organigram's primary facility is located in Moncton,
New Brunswick and the Company is regulated by the Cannabis Act and
the Cannabis Regulations (Canada).
This news release contains forward-looking information. Often,
but not always, forward-looking information can be identified by
the use of words such as “plans”, “expects”, “estimates”,
“intends”, “anticipates”, “believes” or variations of such words
and phrases or state that certain actions, events, or results
“may”, “could”, “would”, “might” or “will” be taken, occur or be
achieved. Forward-looking information involves known and unknown
risks, uncertainties and other factors that may cause actual
results, events, performance or achievements of Organigram to
differ materially from current expectations or future results,
performance or achievements expressed or implied by the
forward-looking information contained in this news release. Risks,
uncertainties and other factors involved with forward-looking
information could cause actual events, results, performance,
prospects and opportunities to differ materially from those
expressed or implied by such forward-looking information include
factors that could change anticipated timelines for filing of
submissions, processing times, capacity utilization, cultivation
and in market timelines; including risks as disclosed in the
Company’s most recent annual information form, management’s
discussion and analysis and other Company documents filed from time
to time on SEDAR (see www.sedar.com) and filed or furnished to the
Securities and Exchange Commission on EDGAR (see www.sec.gov).
Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release. Although the Company believes that the assumptions
and factors used in preparing the forward-looking information in
this news release are reasonable, undue reliance should not be
placed on such information and no assurance can be given that such
events will occur in the disclosed time frames or at all. The
forward-looking information included in this news release are made
as of the date of this news release and the Company disclaims any
intention or obligation, except to the extent required by law, to
update or revise any forward-looking information, whether as a
result of new information, future events or otherwise. We seek safe
harbor.
1 The forward looking estimate of target production capacity,
once fully operational, is based on a number of material factors
and assumptions. Please see the Company’s most recent MD&A
available on SEDAR at www.sedar.com and EDGAR at www.sec.gov and
the disclaimer at the end of this release.
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version on businesswire.com: https://www.businesswire.com/news/home/20190909005304/en/
For Investor Relations enquiries, please contact:
Amy Schwalm Vice President, Investor Relations
Amy.Schwalm@organigram.ca (416) 704-9057
For Media enquiries, please contact:
Ray Gracewood Senior Vice President, Marketing and
Communications rgracewood@organigram.ca (506) 645-1653
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