MONCTON, NEW BRUNSWICK–(Marketwired – April 12, 2016) – OrganiGram Holdings Inc. (TSX VENTURE:OGI)(OTCQB:OGRMF) (the “Company”) provides a preliminary synopsis of its 2nd quarter results.
Highlights from the financial results for the quarter include a 38% increase in revenue, a 14% improvement in gross margin percentage and the achievement of positive year-to-date (YTD) EBITDA and cash flow from operations. See further details below. The information detailed below is a preliminary review of our financial highlights. Full financial statements for the quarter ending February 29, 2016 are expected to be released April 25, 2016.
|Figures in CDN$||Quarter Ending February 2016 (Unaudited)||Quarter Ending November 2015 (Unaudited)|
|Net revenue for the period||$||1,425,466||$||1,029,376|
|Net revenue per gram sold||$||8.42||$||7.21|
|Gross Margin %||76.0||%||62.3||%|
|Cost of goods sold1 per gram||$||2.03||$||2.72|
|Net Income (Loss)||$||55,267||$||(201,211||)|
|EBITDA (excluding fair value adjustment to biological assets)||$||72,424||$||(62,158||)|
|Cash Flow from Operations (YTD)||$||25,958|
|1 Cost of goods sold is defined as cost of sales, indirect production costs and fair value adjustment to biological assets.|
|2 EBITDA is defined as net income (loss) excluding depreciation and financing costs.|
OrganiGram is in the midst of a fully-funded expansion of its current location which, when completed later this year, could bring annual production capacity in the order of 3,500 kilograms. Additionally, with the advent of recreational regulations forthcoming, OrganiGram’s existing acreage and infrastructure enable the Company to pursue an additional 5x increase in production capacity to accommodate the expected increase in consumer demand.
“We continue to focus on all aspects of our business with an eye towards delivering exceptional products for our customers, increasing market awareness, and driving incremental value for our shareholders. Our company is geographically positioned to benefit from some of the lowest power and labour costs in the country, which we are beginning to see reflected in our operating margins. We continue to focus on strategic initiatives to position the Company for incremental market share as we prepare for future recreational possibilities down the road,” said Denis Arsenault, CEO.
To support these initiatives, OrganiGram is pleased to announce that it has entered into an engagement agreement with XIB Consulting Inc. (“XIB”), to assist OrganiGram with its corporate development initiatives including M&A activities, strategic business development and market awareness.
Subject to the approval of the TSX Venture Exchange (the “TSXV”) and pursuant to the engagement agreement, which has an initial term of six months, the Company shall satisfy the engagement fee payable to XIB by issuing 123,456 of Common Shares in the capital of OrganiGram to XIB, which may be credited against incremental fees payable under certain circumstances. The Common Shares will be issued at a price of $0.81 per share. Any issuance of shares will be subject to applicable hold periods required under securities laws.
The appointment of XIB as a consultant of OrganiGram and the corresponding share issuance remains subject to standard regulatory acceptance of applicable filings with the TSX Venture Exchange.
OrganiGram also announces that the company’s change in jurisdiction from the Province of British Columbia to a Federally incorporated company under the Canada Business Corporations Act is now complete (the “Continuance”). The Company would like to specify that the Continuance does not represent a reorganization, amalgamation or merger and will not alter the shareholdings of the shareholders of the Company. Furthermore, the continuance will not affect the operations of the company nor will it affect the management and executives of OrganiGram.
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 Marihuana for Medical Purposes Regulations.
About XIB Consulting Inc.
XIB Consulting Inc., part of the XIB Financial group of companies, is a Toronto-based capital markets consulting and advisory firm founded by Sean McNulty and Peter Hatziioannou. With over 15 years of combined mergers and acquisitions advisory, institutional equity sales, and event-driven hedge fund experience, XIB offers clients corporate consulting services from a unique perspective in the Canadian capital markets.
On behalf of the board of directors, Denis Arsenault, Director and CEO
OrganiGram Holdings Inc.
For further information, please visit www.organigram.ca.
The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press 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.
CanBud Distribution Corporation Closes 2M Second and Final Tranche of its Oversubscribed Private Placement Offering
CanBud Distribution Corporation (CSE: CBDX) (FSE: CD0) (“CanBud” or the “Corporation”) is pleased to announce that it has closed the final tranche of its oversubscribed non-brokered private placement for aggregate gross proceeds of approximately $4,730,000 (the “Offering”).
The Corporation issued a combined total of 39,409,346 units (each a “Unit“) at price of $0.12 per Unit, with each Unit comprised of one common share in the capital of the Corporation (each a “Common Share“) and one common share purchase warrant (each a “Warrant“). Each Warrant entitles the holder to purchase one additional Common Share at an exercise price of $0.22 within 24 months of the closing of the Offering (the “Warrant Term“), provided, however that if the closing price of the Common Shares on the Canadian Securities Exchange (the “CSE“) (or any such other stock exchange in Canada as the Common Shares may trade at the applicable time) is $0.25 or greater per Common Share for a period of five (5) consecutive trading days at any time after the closing date of the Offering, the Corporation may accelerate the Warrant Term such that the Warrants shall expire on the date which is 30 days following the date a press release is issued by the Corporation announcing the reduced warrant terms.
Thoughtful Brands Inc. (CSE:TBI)(FSE:1WZ1)(OTCQB:PEMTF) (the “Company” or “Thoughtful Brands) announces that the letter of intent with Franchise Cannabis Corp. (“FCC”), previously announced in January, has been terminated. The previously announced European joint venture with FCC will continue and allow the Company to launch and tailor its products to European consumer demands
In connection with termination of the merger transaction with FCC, the Company has agreed to pay FCC $100,000 in cash and to issue FCC 5,000,000 common shares of the Company at a deemed value of $0.05 per share. The common shares will be subject to a four-month-and-one-day statutory hold period in accordance with applicable securities laws.
Mergers and acquisitions (M&A) in cannabis space have helped boost the industry to new levels.
Strategic sale of non-core assets by Lobe adds non-dilutive capital and shareholder value
Lobe Sciences Ltd. (CSE: LOBE) (OTC Pink: GTSIF) (“Lobe” or the “Company”) is pleased to announce, further to its press release dated February 23, 2021, that it has completed the sale to Ionic Brands Corp. (“Ionic Brands”) of Lobe’s non-core cannabis assets relating to Washington-based Cowlitz County Cannabis Cultivation Inc. (“Cowlitz”) held by Lobe’s subsidiary vendor, Green Star Biosciences Inc. (the “Transaction”).
Seattle Area Grocery Chain Metropolitan Market to Begin Carrying KOIOS and Fit Soda on March 22, 2021
Adding to its existing presence on the west coast of the United States, all five KOIOS™ flavours and all four Fit Soda™ flavours will be carried in Metropolitan Market stores beginning on Monday, March 22, 2021. Serving the Seattle-Tacoma area (population 3.87 million), Metropolitan Market is one of five chains under its parent firm Good Food Holdings, which has a total of 51 stores in California, Oregon, and Washington State.
Koios Beverage Corp. (CSE: KBEV; OTC: KBEVF) (the “Company” or “Koios”) is pleased to announce that beginning on Monday, March 22, 2021, Koios’ entire line of canned beverage products will be sold at all locations of Metropolitan Market, an urban format supermarket chain in the Seattle-Tacoma area of Washington State. In Q1 2021, the Company announced multiple placements of its beverage products with regional grocers in markets on the west coast of the United States including Market of Choice in Oregon Jensen’s in Southern California and major natural grocery chain Sprouts Farmers Market which has a substantial west coast presence with over one third of its locations (360+ stores across 23 states) in California as well as Washington State 1 . The Company has also recently announced other developments relating to its expansion efforts being undertaken in 2021 such as an in-house beverage canning facility and distribution agreements with regional and national wholesale partners.