OrganiGram Holdings Inc. (TSX VENTURE:OGI)(OTCQB:OGRMF) (the “Company”) announced the financial results for the fourth quarter and fiscal year ending August 31, 2016. A copy of the financial statements and the corresponding management discussion and analysis are available on the investors section of the Company’s website (www.organigram.ca) and are also filed and available on SEDAR (www.sedar.com). …
“The emerging cannabis industry is developing at a rapid pace and OrganiGram as a Company is evolving and preparing for what we believe is one of the most exciting commercial events in the history of the capital markets. While we are happy to have our first year of positive operating cash flow under our belt, this is just the beginning and we have never been more optimistic about our future. Our facility expansion is well underway, our branding initiatives are developing nicely, and we have been fortunate enough to establish partnerships with some of the strongest platforms in the space,” says Denis Arsenault, CEO of OrganiGram.
Some selected highlights from the fiscal year ended August 31, 2016 include:
|54%||Adjusted Margin* (excluding FV adjustment)||25%|
|$29,530||Adjusted EBITDA* (excluding FV adjustment)||($1,835,997)|
|$72,904||Cash Flow from Operations*||($1,679,223)|
Since August 31, 2016, several projects have been completed and new initiatives undertaken as the Company continues to scale its business to capture continued growth in the medicinal market, and ultimately, for favorable positioning in the emerging recreational cannabis market. Some of the key developments subsequent to the quarter and fiscal year end include:
September 1, 2016 – OrganiGram entered an exclusive product development and distribution agreement with TGS International, LLC (“TGS International”). The agreement provides for consulting services related to the development and operation of a commercial scale cannabis extracts production and processing facility, as well as the exclusive licensing in Canada of over 225 unique cannabis products. TGS International is an affiliate of The Green Solution, LLC (“TGS”), a vertically-integrated cannabis company which owns and operates over 300,000 square feet of state licensed and regulated production, processing, and manufacturing facilities as well as 13 medicinal and/or adult-use retail locations in the state of Colorado and 2 medicinal facilities in Illinois. For more information about the TGS Group, visit www.mygreensolution.com or www.nectarbee.com.
September 22, 2016 – The Company announced it had successfully amended its Health Canada licensed sales capacity of dried marijuana to 1,200kg per annum and increased licensed production and sales capacity for cannabis oils to 500kg per annum.
October 11, 2016 – The Company closed the acquisition of the 136,000 square foot building and 10 acre industrial property adjacent the existing OrganiGram facility. The company also announced a series of significant expansion initiatives on both the existing and newly acquired properties. Once completed, the pro-forma production capacity is expected to be approximately 26,000 kg per year. This expansion also includes a state of the art 15,000 square foot commercial scale oils and extracts manufacturing facility that is engineered and designed in collaboration with OrganiGram’s partners in Colorado, TGS International LLC.
November 16, 2016 – The Company provided a balance sheet and operating update which highlighted operating select operating metrics including:
- Over $1.0 million in net sales for the month of October
- Repayment of $1.0 million of 9.0% subordinated debt
- Conversion of $2.9 million of 6.75% convertible debentures into common shares
November 23, 2016 – The Company announced that it had been chosen as the exclusive Canadian cannabis producer, business partner and brand developer for Nova Scotia-based Trailer Park Boys (“TPB”). OrganiGram will work with the team at TPB Productions Ltd. to develop branding, packaging, and a competitive product portfolio targeted towards recreational marijuana consumers and distributed exclusively by OrganiGram. The agreement, which has an initial term of five years, includes a combination of cash royalties and other non-monetary consideration.
December 7, 2016, the Company closed its previously announced short form prospectus offering, on a bought deal basis, including the full exercise of the over-allotment option, for aggregate gross proceeds of $40,253,450. With the completion of this financing, cash and short-term investments as of December 8, 2016 equated to approximately $62.4 million.
* These measures are non-GAAP financial measures that do not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies. These non-GAAP financial measures are explained in the Management’s Discussion & Analysis under Adjusted Gross Margin, Adjusted EBITDA, and Cash Flow from Operations, a copy of which has been filed today on www.sedar.com
For more information, visit www.organigram.ca
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”).
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.
This news release contains forward-looking information which involves known and unknown risks, uncertainties and other factors that may cause actual events to differ materially from current expectation. Important factors – including the availability of funds, 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, whether as a result of new information, future events or otherwise.
Chief Operating Officer
OrganiGram Holdings Inc.
Director of Investor and Media Relations