MONCTON, NB, March 6, 2018 /CNW/ - Organigram Holdings Inc. (TSX VENTURE: OGI) (OTCQB: OGRMF) (the "Company" or "Organigram"), a leading licensed producer of medical marijuana based in Moncton, New Brunswick, is pleased to announce that it has received Health Canada approval for the remaining 13 rooms of its 23 room Phase 2 expansion a week ahead of schedule. The Company previously announced the available use of the first 10 rooms of the Phase 2 expansion on February 12, 2018. The Company expects harvests from the Phase 2 expansion to begin the third week of April.
Increased Efficiency and Improved Yields
The Phase 2 expansion includes significant improvements and efficiencies to the Company's cultivation and processing systems. Enhancements including a fully automated irrigation system in the Phase 2 grow rooms, automated potting, fully automated waste destruction system and automated packaging lines mean immediate and ongoing cost savings as well as increased yields.
Organigram's standardized, data-based approach to production has been trending yields that are in some cases 50% higher than its previous estimates and the Company fully anticipates this to continue to increase with enhanced improvements in cultivation and environmental design in Phase 3 and Phase 4 as well as through achievements of economies of scale through optimization of its pre-vegetation and cloning processes.
"We are seeing some harvest yields that are more than 400 grams per square foot a year and have witnessed the quality, density and size of flowers improve tremendously," said Greg Engel, CEO, and "With these results we are revising our current production forecast estimates as well as those for our next expansion, set to break ground in April 2018, so that by early 2020 we will be producing over 110,000 kg/annum from fully funded operations".
Revised Production Capacity Forecasts
The following table reflects the Company's revised production capacity forecasts (note the timing and sizing of the Phase 4a, 4b, and 4c expansions remain subject to change based on final design specifications):
Production Capacity kg/annum
Phases 1, 2
Already in Cultivation
Phases 1, 2, 3
Phase 3: May-2018
Phases 1, 2, 3, 4a
Phase 4a: Apr-2019
Phases 1, 2, 3, 4a, 4b
Phase 4b: July-2019
Phases 1, 2, 3, 4a, 4b, 4c
Phase 4c: Apr-2020
About Organigram Holdings Inc.
Organigram Holdings Inc. is a TSX Venture Exchange listed company whose wholly owned subsidiary, Organigram Inc., is a licensed producer of medical marijuana in Canada. Organigram is focused on producing the highest quality, condition specific medical marijuana for patients in Canada. Organigram's facility is located in Moncton, New Brunswick and the Company is regulated by the Access to Cannabis for Medical Purposes Regulations ("ACMPR").
Organigram has been ranked in the top ten Clean Technology & Life Sciences Sector on the TSX Venture Exchange 50.
The news release contains forward-looking information which involves known and unknown risks, uncertainties and other factors – including the availability of funds, consummation of definitive documentation, the results of financing efforts, crop yields – that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time on SEDAR (see www.sedar.com). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, which speak only as of the date of this press release. The Company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
The news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended, or state securities laws and may not be offered or sold within the United States absent such registration or an applicable exemption from such registration requirements.
For further information: Organigram Holdings Inc., Paolo De Luca, Chief Financial Officer, (416) 661-0947, (506) 801-8986, [email protected]; Organigram Holdings Inc., Dylan Rogers, Director of Investor Relations, [email protected]