MONCTON, NEW BRUNSWICK--(Marketwired - Oct. 11, 2016) - OrganiGram Holdings Inc. (TSX VENTURE:OGI)(OTCQB:OGRMF) (the "Company" or "OrganiGram") is pleased to announce the closing of its previously announced acquisition of the industrial property adjacent to the Company's existing facility in Moncton, N.B.
The acquisition, which includes a 136,000 square foot building situated on 10 acres of industrial land, facilitates the Company's phased expansion initiatives related to cannabis production and extracts processing. The Board of Directors has approved the initial buildout of approximately 70,000 square feet. This phase of construction will bring Organigram's annual production capacity to approximately 16,000 kg of flower, and approximately 6,400 kg of fan and sweet leaf. The planned expansion also includes a state of the art 20,000 square foot commercial scale oils and extracts manufacturing facility that is engineered and designed in collaboration with our partners in Colorado, TGS International LLC. This phase of our fully funded expansion will commence immediately and is expected to be completed and operational by the fall of 2017.
The remaining square footage of the acquired building is being subleased by OrganiGram and provides the Company with approximately $777,000 in lease payments and shared operating costs on an annual basis. This allows the Company to keep its overhead low and to pursue the expansion initiatives in a more cost effective manner.
"We are fortunate to be able to consolidate the acquired property with our existing location and transition to the next phase of our expanded production platform immediately. We believe that we have positioned OrganiGram to undertake incremental production and processing capabilities in a timelier manner than most of its competitors. Having a blue chip tenant occupy the space which we don't currently require, allows us to execute this expansion more cost effectively and gives us the ability to utilize our newly acquired space in ways that create value for OrganiGram shareholders," says Denis Arsenault, Chief Executive Officer of OrganiGram.
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.