Full Press Release Details
ORGANIGRAM S PORTFOLIO OF ADULT RECREATIONAL
This Management s Discussion and Analysis dated July 12, 2019
(this MD&A ), should be read in conjunction with the condensed consolidated
interim financial statements (the Interim Financial Statements ) of Organigram
Holdings Inc. (the Company or Organigram ) for the three and nine months
ended May 31, 2019 ( Q3 of Fiscal 2019 ) and the audited consolidated financial
statements for the year ended August 31, 2018, including the accompanying notes
Financial data in this MD&A is based on the Interim
Financial Statements of the Company for Q3 of Fiscal 2019 and are expressed in
thousands of Canadian dollars ( $ ), except for share and per share
calculations, per gram ( g ) or kilogram ( kg ) of dried flower and per
milliliter ( ml ) or liter ( L ) of oil calculations and prepared in accordance
with International Accounting Standard 34 Interim Financial Reporting ( IAS
34 ) of International Financial Reporting Standards ( IFRS ) as issued by the
International Accounting Standards Board ( IASB ), unless otherwise stated.
Financial figures relating to prior periods in the
eight-quarter comparative table captioned Summary of Quarterly Results have
been restated due to the reclassification of discontinued operations (see note
24 of the Interim Financial Statements) and the reclassification of shipping
expense from selling and marketing expense to cost of sales (see note 25 of the
Interim Financial Statements).
The financial information in this MD&A contains certain
financial and operational performance measures that are not defined by and do
not have any standardized meaning under IFRS; and are used by management to
assess the financial and operational performance of the Company. These include,
but are not limited to, the following:
Yield per plant (in grams);
Dried flower equivalent ( DFE , in grams or kilograms);
Target production capacity;
Cost of cultivation per dried flower harvested (both cash and all-in );
Adjusted gross margin (excluding fair value adjustments); and
The Company believes that these non-IFRS financial measures, in
addition to conventional measures prepared in accordance with IFRS, enable
investors to evaluate the Company s operating results, underlying performance
and prospects in a similar manner to the Company s management. These non-IFRS
financial performance measures are defined and reconciled to IFRS in the
sections in which they appear.
As there are no standardized methods of calculating these
non-IFRS measures, the Company s approaches may differ from those used by
others, and accordingly, the use of these measures may not be directly
comparable. Accordingly, these non-IFRS measures are intended to provide
additional information and should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with IFRS.
The Company s wholly-owned subsidiary, Organigram Inc. ( OGI ),
is a licensed producer of cannabis and cannabis derived products (a Licensed
Producer or LP ) under the Cannabis Act (Canada) and the Cannabis
Regulations (Canada) (together, the Cannabis Act ) and regulated by Health
The Company s head and registered offices are located at 35
English Drive, Moncton, New Brunswick, E1E 3X3. Any inquiries regarding the
Company may be directed to its Vice President, Investor Relations, Amy Schwalm,
at (416) 704-9057 or by email to investorrelations@organigram.ca. The Company s common
shares ( Common Shares ) are listed on the Nasdaq Global Select Market
( NASDAQ ) and on the TSX Venture Exchange ( TSX-V ) under the symbol OGI .
Additional information relating to the Company, including the
Company s most recent Annual Information Form (the AIF ) is available under the
Company s issuer profile on the Canadian Securities Administrators System for
Electronic Document Analysis and Retrieval ( SEDAR ) at www.sedar.com. Our reports and other information filed
with or furnished to the United States Securities and Exchange Commission
( SEC ) are available on the SEC s Electronic Document Gathering and Retrieval
System ( EDGAR ) at www.sec.gov.
2. CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
Certain information herein contains or incorporates comments
that constitute forward-looking information within the meaning of applicable
securities legislation ( forward-looking information ). Forward-looking
information, in general, can be identified by the use of forward-looking
terminology such as outlook , objective , may , will , could , would ,
might , expect , intend , estimate , anticipate , believe , plan ,
continue , budget , schedule or forecast or similar expressions suggesting
future outcomes or events. They include, but are not limited to, statements with
respect to expectations, forecasts or other characterizations of future events
or circumstances, and the Company s objectives, goals, strategies, beliefs,
intentions, plans, estimates, projections and outlook, including statements
relating to the Company s plans and objectives, or estimates or predictions of
actions of customers, suppliers, partners, distributors, competitors or
regulatory authorities; and, statements regarding the Company s future economic
performance. These statements are not historical facts but instead represent
management beliefs regarding future events, many of which, by their nature are
inherently uncertain and beyond management control. Forward-looking information
has been based on the Company s current expectations about future events.
Certain forward-looking information in this MD&A include,
but are not limited to the following:
Moncton Campus (as defined herein) expansion plans, licensing and target
production capacity and timing thereof;
Expectations regarding production capacity, facility size, costs and
Expectations around future opportunities and sales including the relative
mix of medical versus adult-use recreational products, the Company s financial
position, future liquidity and other financial results;
Legislation of additional cannabis types and forms for adult use in Canada
including regulations relating thereto and the implementation thereof and our
future product forms;
Expectations regarding employee counts;
Expectations around derivative-based products timing, launch and
The general continuance of current or where applicable, assumed industry
Changes in laws, regulations and guidelines, including the recreational
cannabis market and the advent of the cannabis- derived products market and
changes in the regulation of medical cannabis;
Price of cannabis and derivative cannabis products;
Dependence of the Company s cash flow and financial performance on third
parties, including its supply partners and its strategic investees;
Fluctuations in the price of Common Shares and the market for the Common