Organigram Holdings Inc. (TSX.V: OGI) (OTCQX: OGRMF)
Organigram Holdings Inc. (TSX.V: OGI) (OTCQX: OGRMF) is the parent company of Organigram Inc., an original and leading Canadian licensed producer ("LP") of premium, quality cannabis and extract-based products. Founded in 2013 and headquartered in Moncton, New Brunswick, 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 delivers industry-leading yields and maximizes cannabis production at the lowest cultivation cost among other Canadian licensed producers. Organigram's high-tech facilities utilize an efficient, state-of-the-art mechanical room that includes both ethanol and CO2 extraction methods.
The company first began as a medical cannabis provider producing 5,000 kg/year (11,000 lbs) of 100 percent organic cannabis grown in pre-fabricated grow pods. Within two years, Organigram increased production to 36,000 kg/year (70,000 lbs) by utilizing an inventive, indoor 3-tier growing system. The company's pharmaceutical grade, state-of-the-art facility currently houses over 45,000 flowering plants growing at any one time.
Organigram's head office, production facility and research & development program are located on the company's 14-acre campus that houses several buildings and a 40-megawatt substation. Leading the way with a proprietary software system that acts as the nervous system of the entire organization, Organigram's team employs a data-driven decision-making process that ensures efficiency and top yields. Numerous design and automation improvements include an ergonomically friendly grow room design, automatic potting machines and automated packaging lines, and larger propagation rooms with advanced environmental systems.
Organigram's fully funded Phase 4 expansion is underway which, when complete by fall of 2019, will bring production capacity of high-quality premium cannabis to 113,000 kg/year (249,000 lbs). The Company has also invested in Hyasynth, a Montreal-based biotechnology company and leader in the field of cannabinoid science and biosynthesis. Hyasynth has developed a disruptive technology using patented enzymes to naturally produce cannabinoids without growing the cannabis plant. This process has the potential to create a global supply of pure cannabinoids at a fraction of the cost of traditional cultivation.
Organigram expects to double its workforce within the year to accommodate increasing growth as the facility expands to 480,000 square feet of production space at full buildout. In September 2017, Organigram signed the first ever recreational cannabis supply agreement in Canada with the Province of New Brunswick. Since then, Organigram has signed similar supply agreements with nine out of 10 provinces, has already exported product out of Canada, and is currently working with German medical cannabis provider, Alpha-cannabis, and Serbia-based Eviana Health Corp. (CSE: EHC), a hemp farm and processing facility.
Organigram has entered into an exclusive consulting agreement with The Green Solution (TGS), a proven market leader based in Denver, Colorado, with 16 retail locations, for development of commercial scale extraction and product processing, along with derivative product development (edibles, vaporizable products and beverage product mixes). Organigram's partnership with Canada's Smartest Kitchen, a leader in food product development, will expand and develop the Company's edibles R&D program and creation of premium chocolate products. Organigram has also signed a multi-year extraction contract with Valens GroWorks Corp. for Valens to produce extract concentrate for oils and derivative products.
Organigram is well-positioned in the cannabis space with several adult-use recreational product lines. These include:
- Trailblazer offers a consistent value with a pre-roll, milled format
- Trailer Park Buds provides niche equity for mainstream users that seek pre-rolls
- Ankr Organics offers premium, organic pre-roll and oils
- Edison Cannabis Co. delivers robust, high THC in a whole flower, pre-roll and oil produced from premium sorted flowers
- Edison Cannabis Co. Reserve offers an ultra-premium, large whole flower that is craft cured and hand trimmed
Experienced Executive Team
- CEO Gregory Engel has more than 30 years of experience in the pharmaceutical industry with over three years of experience as a CEO for a cannabis company.
- Jeff Purcell, senior vice president of operations, has 25 years of experience in operations for companies such as Ganong Chocolates and McCain Foods.
- Tim Emberg, senior vice president of sales and commercial operations, has 20 years of experience in pharmaceutical sales and marketing in the OTC and consumer packed good industry.
- Guillermo Delmonte, president of international operations, brings experience in leading a global cannabis company and worked for 2.5 years as CEO of ICC Labs Inc. in Uruguay.
- Larry Rogers, vice president of international operations, has held roles for Organigram since 2014 including being a member of the board of directors, chief operating officer and vice president/business development.
- Paolo DeLuca, chief financial officer, has 20 years of diversified financial business experience including with West Face Capital and TD Securities.
- Ray Gracewood, chief commercial officer, has 15 years of experience in the marketing space and is a previous senior director of sales and marketing for Moosehead Breweries Ltd.
- Michael Tripp, chief legal officer, worked for private practices at respected business law firms in Moncton and Toronto where he acted on over $3 billion in transactions.
- Q1 2019 results reflect excellent execution with net revenue of $12.4 million (includes only partial quarter of adult recreational sales)
- Areas of focus include continuous improvement to high-quality product for adult recreational and medical markets
- Holds supply agreements with 9 out of 10 Canadian provinces and is working on Quebec as the 10th province
- Continue development of international business partnership to expand global footprint
- Expand production capacity and capabilities to introduce a range of derivative products such as edibles and vaporizable products that meet new legislative guidelines
- Translate results into strong margins, EBITDA and free cash flow for increasing shareholder value
- Lowest cost, highest-yielding cannabis cultivation producer out of all Canadian Licensed Producers
- On track to increase production capacity of high-quality, premium cannabis to 113,000 kg/year (249,000 lbs)