MONCTON, NEW BRUNSWICK--(Marketwired - Nov. 30, 2016) - OrganiGram Holdings Inc. (TSX VENTURE:OGI)(OTCQB:OGRMF) (the "Company") is pleased to announce it has completed the design work related to a proposed addition to the onsite production building located at 35 English Drive in Moncton, NB. The preliminary design and drawings provide sufficient additional space to facilitate incremental production capacity of approximately 9,000 kg per year. When combined with the previously announced and ongoing expansions to both buildings, this new addition brings the total proposed production capacity at OrganiGram to approximately 26,000 kg per year.
"The management team at OrganiGram appreciates the hard work and dedication of our construction and design team. We are very fortunate to have picked this location for our business and to be on a site with previously existing infrastructure that is significantly scalable. This makes construction quicker, less expensive, and permits us to increase our production capacity much sooner than many of our peers," says Denis Arsenault, CEO. "Our focus as an executive team is on capturing economies of scale through cost efficient expansion, developing our unique portfolio of brands, and exercising prudence and discipline with our cash flow management. We believe these commitments and the corresponding financial results are important differentiators for OrganiGram," continues Arsenault.
The Company anticipates that construction can be completed concurrently with the previously announced plans and that production rooms can be ready for harvest by the early spring of 2018; a time the Company believes having sufficient supply will be critical. Costs related to this expansion are anticipated to be fully funded with the Company's existing cash on hand and with the proceeds from the recently announced $35 million bought deal financing, which is expected to close on or about December 7, 2016.
"This amendment to our expansion plans represents another strategic building block supporting OrganiGram with the resources and capacity required to capitalize on future opportunities in the cannabis marketplace. Looking forward from a strategic perspective, this expansion provides OrganiGram with the scale to take full advantage of our recently announced agreements with the Trailer Park Boys and The Green Solution of Colorado," says Ray Gracewood, Chief Commercial Officer. "Our plan should result in OrganiGram having one of the highest production capacities in the industry; and we intend to leverage this capacity and use our relationships to develop the brands and products that narrate the recreational marketplace," continues Gracewood.
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.