Organigram Holdings Inc. (OGRMF) reports Health Canada approval of new grow rooms

0
285

Organigram reports Health Canada approval of new grow rooms, increased yields and upward revision to production capacity forecasts

Organigram Holdings Inc. (TSX VENTURE: OGI) (OGRMF) (the “Company” or “Organigram“), a leading licensed producer of medical marijuana based in Moncton, New Brunswick , is pleased to announce that it has received Health Canada approval for the remaining 13 rooms of its 23 room Phase 2 expansion a week ahead of schedule.  The Company previously announced the available use of the first 10 rooms of the Phase 2 expansion on February 12 , 2018.  The Company expects harvests from the Phase 2 expansion to begin the third week of April.

The Phase 2 expansion includes significant improvements and efficiencies to the Company’s cultivation and processing systems. Enhancements including a fully automated irrigation system in the Phase 2 grow rooms, automated potting, fully automated waste destruction system and automated packaging lines mean immediate and ongoing cost savings as well as increased yields.

Organigram’s standardized, data-based approach to production has been trending yields that are in some cases 50% higher than its previous estimates and the Company fully anticipates this to continue to increase with enhanced improvements in cultivation and environmental design in Phase 3 and Phase 4 as well as through achievements of economies of scale through optimization of its pre-vegetation and cloning processes.

“We are seeing some harvest yields that are more than 400 grams per square foot a year and have witnessed the quality, density and size of flowers improve tremendously,” said Greg Engel , CEO, and “With these results we are revising our current production forecast estimates as well as those for our next expansion, set to break ground in April 2018 , so that by early 2020 we will be producing over 110,000 kg/annum from fully funded operations”.

Revised Production Capacity Forecasts

The following table reflects the Company’s revised production capacity forecasts (note the timing and sizing of the Phase 4a, 4b , and 4c expansions remain subject to change based on final design specifications):

Production Campus

Target Construction

Completion Date

Production Capacity kg/annum

Previous Forecast

New Forecast

Phases 1, 2

Already in Cultivation

16,000

22,000

Phases 1, 2, 3

Phase 3:  May-2018

25,000

36,000

Phases 1, 2, 3, 4a

Phase 4a: Apr-2019

39,500

65,000

Phases 1, 2, 3, 4a, 4b

Phase 4b: July-2019

47,500

81,000

Phases 1, 2, 3, 4a, 4b, 4c

Phase 4c: Apr-2020

65,000

113,000

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”).

Organigram has been ranked in the top ten Clean Technology & Life Sciences Sector on the TSX Venture Exchange 50.

Forward-looking statements

The news release contains forward-looking information which involves known and unknown risks, uncertainties and other factors – including the availability of funds, consummation of definitive documentation, 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, 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.

LEAVE A REPLY

Please enter your comment!
Please enter your name here