Company sends initial shipments of more than 130 thousand units
MONCTON, NB, May 29, 2019 /CNW/ – Organigram Holdings Inc. (TSXV: OGI) (NASDAQ: OGI), the parent company of Organigram Inc. (the “Company” or “Organigram”), a leading licensed producer of cannabis, is pleased to announce it has recently shipped more than one hundred and thirty thousand units of pure cannabidiol (CBD) oil destined for markets across Canada.
The recent legalization of adult-use, recreational cannabis in Canada has resulted in an increased demand for CBD, a naturally occurring compound in cannabis which has no psychoactive effect.
“Since legalization, Canadian consumers have proven themselves to be not only receptive to, but surprisingly well educated about, the benefits of CBD,” says Greg Engel, CEO, Organigram. “Consumers have embraced the idea of cannabis as it relates to overall wellness. While medical patients have long since discovered the potential benefits of CBD, we didn’t anticipate how that awareness would translate into the recreational market but are pleased to be able to help meet this consumer demand.”
Organigram attributes its ability to respond to growing CBD demand in part to the success of its strategic relationships and ongoing inputs from its provincial partners.
As previously announced, Organigram has a long-term agreement in place with 1812 Hemp, a New Brunswick-based industrial hemp research company. Initially, the deal offered Organigram access to approximately 6,000 kg of dried hemp flower harvested in the fall of 2018 which the Company purchased and sent for extraction in the first calendar quarter of 2019. In addition, Organigram has a right-of-first refusal on future procurement of hemp from 1812 Hemp which is expected to increase significantly over 2018 levels in 2019 and beyond.
Likewise, as announced in early 2019, Organigram’s multi-year extraction contract with Valens GroWorks Corp. means Valens will continue to extract cannabis flowers and trim from Organigram’s Moncton operation as well as hemp to produce extract concentrate. As anticipated, this concentrate is now being used by Organigram to produce cannabis oils. Following legalization of derivative based products, the Company plans to use the concentrates in the production of derivative edible and vaporizable cannabis products.
“The CBD market here in Canada and around the world represents a rapidly growing opportunity,” explains Engel. “At Organigram, we are committed to developing the capacity and relationships that deliver the supply, expertise, and quality our customers are looking for while being able to scale up quickly to meet the increasing demand of the global medical and adult recreational cannabis markets.”
Organigram’s CBD oil is currently packaged in 25 ml bottles with a concentration of 10mg/ml of CBD.
About Organigram Holdings Inc.
Organigram Holdings Inc. is a TSX Venture Exchange and NASDAQ Global Select 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).
For further information: For Investor Relations enquiries, please contact: Amy Schwalm, Vice President, Investor Relations, Amy.Schwalm@organigram.ca, (416) 704-9057; For Media enquiries, please contact: Ray Gracewood, Senior Vice President, Marketing and Communications, firstname.lastname@example.org, (506) 645-1653
Source: Organigram Holdings Inc.
Organigram Holdings Inc. (TSXV: OGI) 6 Month Chart
Organigram Holdings Inc. (TSXV: OGI) Technical Analysis Signal