Filed by newsfilecorp.com Organigram Closes $140 Million Credit Facility with Bank of Montreal Non-dilutive Financing Provides Company with Significant Financial Flexibility MONCTON, MAY 31, 2019 - Organigram Holdings In

Organigram Closes $140 Million Credit Facility

with Bank of Montreal

Non-dilutive Financing Provides Company with Significant

Financial Flexibility

MONCTON, MAY 31, 2019 - Organigram Holdings Inc. (NASDAQ: OGI)

(TSX VENTURE: OGI), the parent company of Organigram Inc. (collectively, the

Company or Organigram ), a leading licensed producer of cannabis, is pleased

to announce that it has closed its previously announced credit facility with

Bank of Montreal ( BMO ) as lead arranger and agent as well as a syndicate

including three other lenders. The facility consists of a $115 million term loan

and a $25 million revolving credit facility (together, the Facilities ), both

of which mature in May 2022. Included in the facility is an uncommitted option

to increase the Facilities by an incremental $35 million to a total of $175

million, subject to agreement by BMO and satisfaction of certain legal and

business conditions.

The closing of this credit facility reflects BMO s and the

syndicate lenders vote of confidence in our management team, ability to deliver

financial results, and investment in our world-class Moncton campus, said Greg

Engel, Chief Executive Officer. Our current expansion plans are fully funded as

we continue to remain on track for completion of Phases 4 and 5 of our

As a Company we are always looking to optimize our capital

structure and reduce our cost of capital, remarked Paolo De Luca, Chief

Financial Officer. We have chosen not to access the public capital markets

since our last financing in January 2018 in order to avoid dilution to our

shareholders. This credit facility is only possible because of our focus on

running a profitable and sustainable business with a disciplined spend that sets

us apart amongst our peers.

The Facilities are secured by assets of Organigram and its

subsidiaries, which primarily consists of the Moncton campus production facility

that is projected to be able to produce dried flower or equivalent cannabis of

approximately 113,000 kg per year by the end of calendar year 2019 and will also

house state of the art added-value manufacturing equipment, including the

previously announced $15 million infrastructure investment to produce world

class infused chocolate products. The proceeds of the term loan will be used to

fund the Phase 4 and 5 expansions of the Moncton campus and refinance the

Company s existing long-term debt with Farm Credit Canada. The revolving credit

facility may be used for general corporate and working capital purposes.

Pursuant to the agreed upon conditions of the Facilities,

Organigram has initially drawn $50 million of the term loan on closing and can

continue to draw down additional funds as required up to the $115 million term

loan commitment through to November 30, 2019. Principal repayments on the term

loan will commence on February 28, 2020 at a rate of 2.5%, or approximately $2.9

million, per quarter thereafter. The Company may, at its discretion, repay the

balance of the Facilities without penalty, at any time.

The pricing of the Facilities is a set margin over the BMO s

CAD Prime Rate or a Bankers' Acceptance rate based on the applicable term, which

may increase or decrease based on a pricing grid linked to the Company s debt to

EBITDA coverage at each quarter-end. Based on the current Bankers Acceptance

benchmark rates and the highest pricing level and margin in the pricing grid, the interest payable is expected to be in the

high 4% to low 5% per annum range. The Facilities contain customary financial

and restrictive covenants.

Additional details on the Facilities can be found in the

Company's documents that will be filed on www.sedar.com.

About Organigram Holdings Inc.

Organigram Holdings Inc. is a NASDAQ Global Select and 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 the use of proceeds of the

credit facility and interest payable. 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 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

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