Full Press Release Details
Organigram Signs New Agreement for Access to 60,000kg of
New advance purchase agreement with 1812 Hemp for access to as much as
60,000kg of hemp flower to be harvested in calendar 2019
Organigram maintains right of first refusal on 1812 Hemp s
In 2018 Organigram purchased 4,300 kg of hemp flower from 1812 Hemp
with exceptional levels of CBD which has been extracted into isolate
and is being formulated for medical and recreational sale
MONCTON, JULY 26, 2019 -- Organigram Holdings Inc. (NASDAQ
Global Select; TSX-V: 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 entered into an advance payment and purchase
agreement (the Payment Agreement ) with 703454 N.B. Inc. (carrying on
business as 1812 Hemp) ( 1812 Hemp ) under which the Company will pre-fund hemp
purchases to receive access to as much as 60,000 kilograms of dried hemp flower
to be harvested in calendar 2019 for extraction into cannabidiol ( CBD )
Organigram is already a party to a purchase agreement entered
into in January 2019 with 1812 Hemp (the January Purchase Agreement ), in which Organigram was granted
a right of first refusal on 1812 Hemp s production of certain hemp
Access to CBD-rich hemp flower is being facilitated through the
Payment Agreement as the Company will advance funds to 1812 Hemp for their
purchase of specialized large-scale hemp harvesting and processing equipment to
maximize crop yields, contribute to increased efficiency and improve
preservation of harvested cannabinoids. Purchase conditions for the dried hemp
flower continue to be governed by the January Purchase Agreement which secures
supply and supports research and development on the genetic improvement of hemp
through traditional plant breeding methods. Funds advanced by Organigram will be
credited toward future hemp flower purchases under the January Purchase
Under the terms of the January Purchase Agreement, Organigram
obtained access to a supply of hemp flower which contains significant and
exceptional levels of CBD, as compared to other Health Canada-approved cultivars
currently in commercial production in Canada. CBD is a naturally occurring
active ingredient in hemp and cannabis that is currently being studied for
various therapeutic uses.
Access to a large, consistent volume of CBD-producing hemp has
become increasingly important as Canadians express their demand for CBD-rich
products for use in both recreational and medical capacities, said Greg Engel,
CEO, Organigram. We ve heard the call for CBD in the market and this agreement
positions Organigram to meet that demand.
1812 Hemp is a New Brunswick based industrial hemp company
focused on furthering the genetic development of existing, and new hemp
cultivars for various applications including natural products, fibres and
medicinal products. For more information, visit 1812hemp.ca.
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 high-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 quantities and quality of CBD
to be purchased and processed, processing and commercialization. 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 results of harvests and as disclosed in the Company s most recent
annual information form and other Company's documents filed from time to time
under the Company s issuer profile on the Canadian Securities
Administrators System for Electronic Document Analysis and Retrieval ( SEDAR )
at www.sedar.com and reports and other information filed with or furnished to
the United States Securities and Exchange Commission ( SEC ) and available on
the SEC s Electronic Document Gathering and Retrieval System ( EDGAR ) at
www.sec.gov. 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 harbor.
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