OrganiGram Holdings Inc.
TSX VENTURE : OGI
OTCQX : OGRMF

OrganiGram Holdings Inc.

July 30, 2015 16:00 ET

OrganiGram Releases Q3 Financial Results and Provides Operational Update

MONCTON, NEW BRUNSWICK--(Marketwired - July 30, 2015) - OrganiGram Holdings Inc. (TSX VENTURE:OGI)(OTCQX:OGRMF) (the "Company") is today releasing financial statements for the 9-month period ended May 31st, 2015. The Company's quarterly financial statements and Management's Discussion and Analysis document are available on SEDAR.

OGI is pleased to report a profit this quarter of $119,695. Through Q3 they experienced exceptional sales and volume growth as the company further implemented both customer acquisition and retention strategies. Sales grew to $230,053 in Q3, representing an increase of 238% from the previous quarter. Grams sold during the period also experienced significant growth at 182%, for a total in excess of 31,000 grams.

The Company is on track to maintain this growth curve in Q4 with projected sales of $500,000 and in excess of 1,000 registered patients. As a result of the continued sales growth, the Company has completed four additional, 80 light, flowering rooms. It is anticipated that these new rooms will receive inspection from Health Canada the coming days.

Roger Rogers, President states, "I am pleased with the sales growth in Q3 and even more so with the rapid acquisition of clients that we have seen over the last few months. This growth has carried forward into Q4 and we expect to, yet again, more than double our sales in this quarter. As we move into our next fiscal year, with the upcoming approval of four new grow rooms, I foresee that this trend will continue and anticipate achieving positive cash flow in Q1 of our next fiscal, which begins on September 1st, 2015."

The Company would also like to announce the resignation of Scott Franklin as the Interim CFO and announce the appointment of Roger Rogers to President & CFO.

"I would like to thank Scott for his contributions over the past year and helping to establish OrganiGram as a successful and growing LP. Scott has chosen to pursue other opportunities closer to his residence in Toronto. Due to our growth and the need for daily financial oversight, I support his decision. In addition to my role as President, I look forward to working with our team and assuming the responsibilities of CFO. Much of my career has been in senior financial roles, thus I believe this to be a natural transition for the company and based on our success to date, I see this as an opportunity to help OrganiGram achieve even greater results," said Mr. Rogers.

Furthermore, the Company is pleased to announce that they have secured $3 million of financing (the "Financing"), with $2 million of the Financing coming from Farm Credit Canada in the form of a secured long term loan facility. The loan will be secured over all of the assets of the Company.

Roger Rogers commented, "Farm Credit has been a partner with OGI since the early stages and we truly appreciate their continued support and the exceptional relationship we have. This additional funding is a further sign of the success of the company and the leadership of our management team."

The remaining $1 million of the Financing is provided by Duce Holdings LLC ("Duce") and Denaco Group Ltd., a corporation in which Denis Arsenault, the Chief Executive Officer of the Company, is a director ("Denaco"), to provide financing to the Company.

Duce and Denaco have been issued subordinated secured debentures (the "Debentures") and 200,000 common share purchase warrants of the Company (the "Warrants") for gross proceeds of $1 million. The Debentures shall bear interest at 9% per annum and shall mature on September 1, 2017; the Debentures are secured with a subordinated charge over all of the Company's assets. The Debentures may be converted into common shares of the Company in certain limited circumstances. Each whole Warrant entitles the holder thereof to purchase one common share of the Company for $0.45 (subject to TSX-V pricing guidelines). The Warrants shall not be exercisable before 12 months after the Closing Date and shall expire on June 15, 2017.

The proceeds from the Financing will be utilized for working capital purposes and for the expansion of the Company's facility located in Moncton, New Brunswick.

The Financing is subject to the approval of the TSX Venture Exchange. All securities issued will be subject to a hold period pursuant to applicable securities law.

Analyst Call

The Company will be hosting an investor and analyst call on Friday, July 31st, 2015 at 08:30 EST to discuss the Q3 results and future guidance.

Time and Date: 08:30 EST, Friday, July 31st, 2015
Toll-Free Dial-In Number: (647) 788-4919
Access ID: 1537078

The conference call will be recorded and available for replay until August 14, 2015.

Replay Dial In number: (416) 621-4642
Passcode: 1537078

About OrganiGram Holdings

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. At OrganiGram, our mission is to be the leading producer of organically grown medical marijuana. By combining advanced technologies and proven methods, we assure a secure and regulated source of medical marijuana for patients and doctors in Canada that requires no irradiation or cold pasteurization. All of our products are lab tested prior to packaging and are manufactured under strict controls and in conformance with the Good Production Practices of the MMPR as well as the security directives as defined by the Office of Controlled Substances.

See more at www.organigram.ca.

On Behalf of the Board of Directors of OrganiGram,

Roger Rogers, President & CFO

Contact Information