Company positioning itself to compete within
expected largest cannabis edibles segment
MONCTON, NB, May 20, 2019 /CNW/ - Anticipating the
legalization of adult-use cannabis edibles, and ready to
demonstrate a leadership position in the edibles market, Organigram
Holdings Inc. (TSX VENTURE: OGI) (OTCQX: OGRMF), the parent company
of Organigram Inc. (the "Company" or "Organigram"), a leading
licensed producer of cannabis, is pleased to announce a
$15 million investment commitment in
a high-speed, high-capacity, fully-automated production line with
ability to produce an estimated 4 million kilograms of exceptional
chocolate cannabis edibles per year. Organigram expects to take
delivery of the line in the fall.
In addition to its sheer capacity, adaptability to anticipated
future growth of the domestic and international chocolate edibles
markets, the line is expected to allow Organigram's product
development team to introduce chocolate innovations unique not only
to the cannabis industry, but to the chocolate industry as a
whole.
"Over the last number of years, Organigram has become known for
its best-in-class cannabis production facility and high-quality
products," says Greg Engel, CEO,
Organigram. "With this investment, we will soon also be known for
our world-class chocolate production capability."
The full Organigram chocolate offering that is under development
is expected to be supported by a carefully curated collection of
partners and suppliers identified for their own global expertise
and unwavering commitment to quality. The investment will
contribute to a state-of-the-art chocolate moulding line and a
fully integrated packaging line, that includes advanced
engineering, robotics, high-speed labeling and automated shipping
carton packing.
Organigram's plan for chocolate production reflects the
Company's commitment to transformative thinking leading to
innovative product development. "We continually look for
opportunities to lead," says Engel. "That leadership begins with
creativity and curiosity and ends when we have a portfolio of novel
products that delight our customers."
Chocolate Expertise
Organigram's foray into chocolate is led by a product
development and production team with more than 25 years of combined
chocolate experience and expertise.
As previous Vice President, Operations at Ganong Bros Limited,
Jeff Purcell, Organigram's Senior
Vice President of Operations, will leverage his many years of
chocolate experience to implement and manage the project. The
Company has also recruited a marketing, product development and
research team led by Ginette Ahier,
previously of Adorable Chocolate, and Mouna Gharsallah, previously
of Tunisia based Sotuchoc.
"Not only have we invested in exceptional technology, we have
also brought an outstanding team to the table," says Engel. "I
don't believe there is another team assembled out there that can
rival ours when it comes to understanding – and reimagining – the
potential of chocolate cannabis infused edibles."
Investor Relations Services
As previously announced, the Company will commence trading on
the NASDAQ Global Select Market on May 21,
2019. To coincide with this new listing, Organigram has
engaged Native Ads, Inc. ("Native Ads") to provide and
manage a digital media marketing campaign for the Company. The
Company has entered into a master services agreement with Native
Ads for a total cost of approximately CAD$270,000 and neither Native Ads nor any of its
directors and officers own any securities of the Company. The
agreement has an initial term of 6 months. Native Ads will provide
content development, web development, media distribution and
campaign reporting and optimization.
Native Ads with a registered office at 244 Fifth Avenue,
New York, New York, is in the
business of providing strategic digital media services, marketing
and data analytics services. Native Ads owns and operates a
proprietary ad exchange with over 80 integrated SSPs (supply side
platforms) resulting in access to 3-7 billion daily North American
ad impressions. The full-service ad agency arm leverages its
proprietary platform and traffic buying methodologies to assist
issuer clients with high volume content dissemination to
appropriate audiences at the appropriate times.
Organigram is also pleased to announce that it has entered into
an agreement with Hybrid Financial Ltd. ("Hybrid") to
provide Organigram marketing services to advisors, brokers and
institutional investors in North
America. Under the terms of the agreement, Organigram will
pay a monthly retainer of approximately CAD$51,000. The agreement is month to month and
may be terminated by Organigram on 15 days notice.
Hybrid is a sales and distribution company that actively
connects issuers to the investment community. With offices in
both Toronto and Montreal, Hybrid offers comprehensive coverage
of both the Canadian and U.S. markets. Neither Hybrid, nor any of
its directors and officers own any securities 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 cannabis and cannabis-derived products in
Canada.
Organigram is focused on producing the highest-quality,
indoor-grown cannabis for patients and adult recreational consumers
in Canada, as well as developing
international business partnerships to extend the company's global
footprint. Organigram has also developed a portfolio of legal adult
use recreational cannabis brands including The Edison Cannabis
Company, Ankr Organics, Trailer Park Buds and
Trailblazer. Organigram's primary facility is located
in Moncton, New Brunswick and
the Company is regulated by the Cannabis Act and
the Cannabis Regulations (Canada).
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. Often,
but not always, forward-looking information can be identified by
the use of words such as "plans", "expects", "estimates",
"intends", "anticipates", "believes" or variations of such words
and phrases or state that certain actions, events, or results
"may", "could", "would", "might" or "will" be taken, occur or be
achieved. Forward-looking information involves known and unknown
risks, uncertainties and other factors that may cause actual
results, events, performance or achievements of Organigram to
differ materially from current expectations or future results,
performance or achievements expressed or implied by the
forward-looking information contained in this news release.
Examples of such statements include statements with respect to
growth of the edibles market, Organigram's expected market
position, size of chocolate segment as part of the overall edibles
market, timing for delivery. Risks, uncertainties and other factors
involved with forward-looking information could cause actual
events, results, performance, prospects and opportunities to differ
materially from those expressed or implied by such forward-looking
information, including risks associated with new product
categories, regulation and timing for implementation, and such
risks as disclosed in the Company's most recent annual information
form and other 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. Although the Company believes
that the assumptions and factors used in preparing the
forward-looking information in this news release are reasonable,
undue reliance should not be placed on such information and no
assurance can be given that such events will occur in the disclosed
time frames or at all. The forward-looking information included in
this news release are made as of the date of this news release and
the Company disclaims any intention or obligation, except to the
extent required by law, to update or revise any forward-looking
information, whether as a result of new information,
future events or otherwise. We seek safe harbor.
SOURCE OrganiGram