- The
company’s recreational cannabis plants and growing processes received
organic certification from Pro-Cert Organic Systems Ltd.
- The
certification is an important part of the company’s expansion strategy, as
the market demand for organic cannabis products is on the upswing
- Organigram
recently announced that it has secured a C$140 million credit facility
with Bank of Montreal as the lead arranger and agent, which will largely
be used to fund the company’s expansion plans and to refinance existing
long-term debt
The end of May 2019 marked several exciting developments
for Organigram Holdings Inc. (TSX.V: OGI) (NASDAQ: OGI), a
leading Canadian licensed producer of medicinal and recreational cannabis
products.
On May 31, Organigram announced that it has received organic
certification for its recreational cannabis plants and growing processes.
Pro-Cert, a North American certification body that is accredited to provide
certificates under Canadian Organic Standards, worked closely with Organigram
during the process.
Consumer demand for organic cannabis is significant,
Organigram CEO Greg Engel said in a news release (http://ibn.fm/kYntT).
Previously, the company offered select organic strains among its Organigram
medical cannabis products. The extended recreational organic offerings are
expected to please recreational consumers who are interested in organically
certified products, Engel concluded.
The certification strengthens Organigram’s product
offerings. Additionally, it complements the EcoCert certification that
currently applies to Organigram’s medical products. Receiving the Pro-Cert
certification also facilitates the company’s planned launch of ANKR Organics –
a line of organic flower and edible extract oils. ANKR’s launch is anticipated
later in 2019 within select Canadian markets.
Organigram has always prioritized the production of high
quality, indoor-grown cannabis products for patients and adult recreational
users in Canada. A focus on extending Organigram’s global footprint is also
guiding the company’s strategic efforts.
As part of its expansion strategy, Organigram also announced
the closing of a C$140 million credit facility with Bank of Montreal (http://ibn.fm/mckuw). The
facility consists of a C$115 million term loan and a C$25 million revolving
credit facility. Both of these mature in May 2022.
“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,”
Engel said in a news release.
Organigram is always looking to optimize its capital
structure and reduce the cost of capital, Organigram CFO Paolo De Luca added.
The decision not to access public capital markets is aimed at avoiding
shareholder dilution, he noted.
Both facilities are secured by Organigram assets, primarily
consisting of the Moncton campus production facility. The final constructed and
licensed facility is projected to be able to produce the dried flower
equivalent cannabis of 113,000 kilograms (249,000 lbs.) per year. Construction
is expected to be completed by the end of 2019. The Moncton facility will also
house innovative manufacturing equipment, including the previously announced
C$15 million infrastructure investment to produce world class infused chocolate
products.
The proceeds from the term loan will be used to fund phases
four and five of the Moncton campus expansion. In addition, funds will be used
to refinance Organigram’s existing long-term debt with Farm Credit Canada.
For more information, visit the company’s website at www.Organigram.ca
NOTE TO INVESTORS: The latest news and updates
relating to OGI are available in the company’s newsroom at http://ibn.fm/OGRMF
About MissionIR
MissionIR is
primarily focused on strategic communications. We have executed countless
communications programs to address the needs of companies ranging from start-ups
to established industry leaders, gaining valuable experience and the expertise
necessary to determine the most effective strategy for any given situation.
For more information, visit www.MissionIR.com
Please see full terms of use and disclaimers on the Mission
Investor Relations website applicable to all content provided by MIR, wherever
published or re-published: http://www.missionir.com/disclaimer.html
