Full Press Release Details
Organigram fulfills gap in Canadian CBD Market with Edison
Company sends initial shipments of more than 130 thousand
MONCTON, May 29, 2019/CNW/ Organigram Holdings Inc. (TSX
VENTURE: 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
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
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.
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 CBD demand and market
conditions and the nature of the adult-use recreational market and consumer
patterns. 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
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