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--  Record net revenue of $26.9 million or more than double the net        revenue of Q1-2019    --  Adjusted gross margin of $16.0 million or 60%(1)    --  Adjusted EBITDA of $13.3 million or adjusted EBITDA margin of        49%(1)    --  As planned, an amendment to our licence for Phase 4a and 4b of        the Moncton facility was submitted to Health Canada in March        for the security perimeter as well as the initial 13 grow rooms        in Phase 4a    --  The Phase 4 expansion is being completed in a series of stages        which once fully licensed will bring our annualized production        up to 113,000 kg by the end of 2019    --  Phase 5 refurbishment underway for an edibles and derivative        facility and additional in-house extraction capacity    --  Signed a letter of intent with the Société québécoise du        cannabis (SQDC); one of only three licensed producers in Canada        to be in all ten provinces    --  Subsequent to quarter-end, all remaining convertible debentures        converted which has removed approximately $49.3 million in        current liabilities from the balance sheet

Organigram Holdings Inc. (TSX VENTURE: OGI) (OTCQX:OGRMF), the parent company of Organigram Inc. (the “Company” or “Organigram”), a leading licensed producer of cannabis, is pleased to announce its results for the second quarter ended February 28, 2019 (“Q2” or “Q2 2019”). The Q2 2019 includes the first full quarter of adult-use recreational sales for the Company.

“We executed very well again this quarter and have established Organigram as one of the leaders in the Canadian adult-use recreational market,” said Greg Engel, Chief Executive Officer.

“For the second consecutive quarter, our results reflected operational excellence which translated into record revenue for the Company, industry-leading adjusted gross margin, and positive adjusted EBITDA, all of which differentiates us from most of the Canadian industry today. Our team has already progressed several key initiatives in preparation for the derivative and edibles launch in the fall of 2019. We are excited about the significant growth ahead expected from these new products, our expanding capacity, our strategic partnerships, and our relentless focus on continuous improvement to consistently deliver high quality product to our customers.”

Select Highlights for the Second Quarter of Fiscal 2019(2)

--  Q2-2019 gross revenue of $33.5 million and net revenue of $26.9        million (less excise taxes) increased exponentially from the        same prior year period (Q2-2018) as Q2 2019 included the first        full quarter of adult-use recreational sales.    --  Cash cost of cultivation of $0.65 and "all-in" cost of        cultivation of $0.85 (including non-cash depreciation and        share-based compensation) per gram of dried flower harvested(3)        decreased from $1.24 and $1.48, respectively, in Q2-2018        largely due to higher yields per plant.    --  Adjusted gross margin (a non-IFRS measure that excludes the        effects of fair value adjustments on biological assets and        inventories) increased to $16.0 million or 60% (of net revenue)        from $1.8 million or 52% (of net revenue) in Q2 2018 as        explained by increased unit volume sales. Q2-2019 reported        gross margin (includes fair value adjustments on biological        assets and changes in inventory) equalled $8.0 million compared        to $6.2 million in Q2-2018.    --  Adjusted EBITDA of $13.3 million or 49% (of net revenue) was        positive for the third consecutive quarter and increased from        adjusted EBITDA loss of $0.3 million in Q2-2018 driven by        exponentially higher unit sales.    --  Sales and marketing and general and administrative ("SG&A")        expenses were $5.7 million (excluding non-cash share-based        compensation), up from $2.7 million in Q2-2018. As a percentage        of net revenue, SG&A expenses excluding share-based        compensation decreased to 21% from 79% in Q2-2018 as management        continued with their disciplined approach to overhead spending        during this high growth period.    --  Net loss from continuing operations of $6.4 million or $(0.05)        per share on a diluted basis, compared to $1.2 million net        income, or $0.01 per share on a diluted basis in Q2-2018.

Significant Events

--  During the quarter, the Company signed:  o a letter of intent with SQDC, making it one of only three Canadian    licensed producers to be in all provinces; and  o a multi-year extraction agreement with Valens GroWorks Corporation    ("Valens") to extract cannabis from Organigram's Moncton operation    and hemp purchased from 1812 Hemp((4)), to produce extract    concentrate for oil production and build up inventory of    concentrate in advance of the expected launch of derivative based    products this fall.    --  Subsequent to quarter end, the Company's remaining convertible        debentures at a carrying value of $49.3 million (approximately        $53.7 million of face value as at February 28, 2019) were        either voluntarily converted by holders or force converted at a        conversion price of $5.42 by the Company as at April 1, 2019        resulting in an issuance of approximately 9.9 million common        shares of the Company. The conversion of the debentures has        removed the $49.3 million liability from the balance sheet and        eliminated a 6% cash coupon payment to the previous maturity of        January 31, 2020.

Phase 4 Production Expansion

--  The Phase 4 expansion of the Moncton facility will add 92        incremental grow rooms in stages and construction is        anticipated to be complete by the end of calendar 2019.        Additional grow rooms are expected to more than triple current        production capacity to 113,000 kg per year(5) from 36,000        kg/yr, once it is complete.    --  The Company submitted an amendment to its license to Health        Canada for the entire perimeter of Phase 4a and Phase 4b as        well as for 13 of the Phase 4a grow rooms in March 2019.    --  In anticipation of receiving licensing, the Company has already        begun cloning for these initial 13 rooms. As per previous        Phases of expansion, the Company will stagger the licensing        amendment submissions and initial use of the remaining rooms to        coincide with its production schedule.    --  The expected capital cost for the entire Phase 4 remains        unchanged from Q1-2019 at approximately $125 million(5) and        Organigram spent $27 million on this Phase in Q2-2019.

Phase 5 Expansion Under Refurbishment

--  The Company owns an additional 56,000 square feet within its        existing facility which became available for its use in March        2019 and is currently being refurbished and designed under        European Union GMP standards for additional extraction        capacity, its own derivatives and edibles facility and        additional office space.    --  Organigram expects primary construction on Phase 5 to be        substantially complete by October 2019. The initial capital        cost estimate is approximately $48 million(5).

Adult-Use Recreational Launch 2.0 -Derivative and Edible Products

--  The Company believes it is well-positioned for the derivatives        launch in the fall of 2019. Organigram is expanding capacity        with the Phase 4 and Phase 5 expansions of its Moncton facility        as well as the extraction agreement with Valens.    --  Organigram has an exclusive consulting agreement with TGS        International LLC, a vertically integrated cannabis company and        proven market leader in Colorado(6), to better understand        demand for certain derivative-based products, market share        trends over time and for the development of commercial scale        extraction and product development and processing.    --  The Company is currently focusing its interests on vaporizable        pen technologies and a selection of edible products. A        chocolate molding line and additional fully automated packaging        equipment for product lines such as edibles and other        derivative based products have been ordered and short path        distillation equipment for edibles and vape pens has been        purchased.    --  Organigram believes it has also developed a shelf stable,        water-soluble and tasteless cannabinoid nano-emulsion        formulation that provides an initial onset within 10 to 15        minutes if used in a beverage. Non-cannabis formulations with a        similar molecule size are water-soluble in humans (i.e.,        absorbed through the bloodstream rather than requiring        first-pass liver metabolism, which results in longer onset and        duration). The Company expects to receive appropriate research        and development licensing in the very near future at which        point it will be able to confirm the onset of action and        duration of effect. At this point, the Company is not planning        to launch its own cannabinoid infused beverages and is actively        seeking a strategic partner with proven experience in beverage        product development.

Balance Sheet

--  As of February 28, 2019, Organigram has approximately $63.4        million in cash and short-term investments and a low debt to        adjusted EBITDA ratio at quarter-end and also generated        positive adjusted EBITDA (a non-IFRS measure) in the last three        reported quarters.    --  On April 1, 2019, the Company converted the principal amount        outstanding of the remaining debentures and eliminated a $49.3        million current liability from its balance sheet.    --  Subsequent to quarter-end, Organigram signed an indicative term        sheet with a Canadian Schedule 1 chartered bank, as arranger        and lead lender and, subject to the completion of due diligence        and definitive loan documentation, expects to receive debt        financing in the aggregate amount of approximately $140        million, which would include both a term loan to finance the        Company's ongoing expansion plans and revolving debt for        general working capital and corporate purposes.

Financial Highlights

(in              $000s              except              for              per              share              amounts)    ---                             Q2-2019 Q2-2018              % Change                     ---              Gross              revenue                         $      33,473                   $      2,926  1,044%              Sales              recovery              (returns)                                 469          (100)%              Excise              taxes                  (6,539)        n/m             Net              revenue                 26,934           3,395            693%              Cost              of              sales              (incl.              indirect              production)             10,890           1,624            571%              Gross              margin              (excluding              FV              adjustment)(1)          16,044           1,771            806%             FV              adjust              on              bio              assets              and              inventories            (8,086)          4,384          (284)%              Gross              margin                   7,958           6,155             29%              General              and              administrative           2,603           1,734             50%              Sales              and              marketing                3,138             934            236%              Share-              based              compensation              (non-              cash)                    3,985           1,154            245%              Total              expenses                 9,726           3,822            154%              Income              (loss)              from              continuing             (1,768)          2,333          (176)%    operations             Net              financing              costs,              investment              (income)                 5,238           1,143            358%    and     other     loss              Income              tax              recovery                 (620)        n/m             Net              income              (loss)              from              continuing             (6,386)          1,190          (637)%    operations              Loss              from              discontinued              operations                              (114)        n/m             Net              income              (loss)              and              comprehensive                  $      (6,386)                  $      1,076  (693)%    income             Net              income              (loss)              from              continuing                     $      (0.049)                  $      0.010     operations     per     common     share,     basic             Net              income              (loss)              from              continuing                     $      (0.049)                  $      0.009     operations     per     common     share,     diluted
(in $000 except for         per share amounts) February 28,        August 31,                      %                                                                                  Change                                    2019                    2018    ---        Cash and short-         term investments                 $              63,359             $            130,064 (51)%        Biological assets         19,835                  19,858     0%        Inventories               95,134                  44,969   112%        Other current         assets                   29,416                   8,323   253%        Property, plant and         equipment               153,282                  98,639    55%        Other non-current         assets                   15,124                     714 2,018%    ---        Total assets                     $              376,150         $              302,567   24%    ---        Current liabilities               $              66,428              $            11,250  490%        Non-current         liabilities              32,838                 106,723  (69)%    ---        Total liabilities         99,266                 117,973  (16)%        Shareholders'         equity                  276,884                 184,594    50%    ---        Total liabilities         and shareholders'         equity                          $              376,150             $            302,567   24%    ===

Capital Structure

Feb 28,                                      2019        Aug 31, 2018      (in $000s)      Current and long-       term debt                            $              12,947    $       3,298      Convertible       debentures                   49,332                  95,866                   (face value)   (53,653)              (112,982)      Shareholders' equity         276,884                 184,594      Total debt and       shareholders'       equity                              $              339,163  $       283,758     (in 000s)      Outstanding shares           139,569                 125,208     Options                        8,292                   7,710     Warrants                       5,836                   8,087      Restricted share       units                           940                     145      Convertible       debentures       (converted at       $5.42)                        9,899                  20,845      Fully-diluted       shares                      164,535                 161,995

During the quarter, approximately $44.4 million of face value of debentures were converted into common shares of the Company at a conversion price of $5.42, leaving approximately $53.7 million of the face value of debentures outstanding. Subsequent to quarter-end, the remaining face value of debentures outstanding were converted into common shares at a conversion price of $5.42 per share, leaving $nil face value of debentures outstanding.

Outstanding share count as at April 12, 2019 is as follows:

(in 000s)              Outstanding shares                       151,844              Options                                    8,272              Warrants                                   3,835               Restricted share units                     1,024               Fully-diluted shares                     164,974

Second Quarter Fiscal 2019 Conference Call

The Company will host a conference call to discuss Q2 2019 earnings results. The details are as follows:

Date:     April 15, 2019     Time:     8:00 a.m. Eastern Time     Toll Free (North America) Dial-In Number:     1-888-231-8191     International Dial-In Number:     647-427-7450 or 778-371-9827     Webcast:

A telephone replay of this conference call will be available shortly after the call’s completion until April 22nd, 2019. To access the recording, use the following dial-in number 1-855-859-2056 and conference ID 1387326. A replay of the webcast will be available at the conclusion of the call at the aforementioned webcast link and on the Company’s investor relations website at and will be archived for a period of 90 days following the call.

About Organigram Holdings Inc.

Organigram Holdings Inc. is a 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 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 (Canada) 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. 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, projections 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.

Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual events to differ materially from current expectations. Important factors – including the availability of funds, consummation of due diligence and definitive documentation, the receipt of regulatory approvals or consents, the completion of regulatory processes and registrations, unforeseen construction delays, competitive and industry conditions, customer buying patterns and crop yields – that could cause actual results to differ materially from the Company’s expectations are disclosed in the Company’s documents filed from time to time on SEDAR including the Company’s Annual and Q2 MD&A and AIF (see Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release. The Company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

This news release refers to certain financial performance measures that are not defined by and do not have a standardized meaning under International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board. These non-IFRS financial performance measures are defined in the MD&A. Non-IFRS financial measures are used by management to assess the financial and operational performance of the Company. 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. 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.

_______________________________________________ (1) Adjusted gross margin and adjusted EBITDA are non-IFRS measures that are not defined by and do not have any standardized meaning under IFRS; please see the Company’s Q2 2019 Management’s Discussion and Analysis (“MD&A”) for definitions and calculations. The Company adjusted the calculation of adjusted EBITDA in Q2 2019 to add back share-based compensation per the Company’s Q2 2019 Condensed Consolidated Interim Statement of Cash Flows. Using this new methodology, the Q1 2019 adjusted EBITDA would equal 55% compared to 40% under the old methodology. (2) Financial figures relating to 2018 have been restated due to the reclassification of discontinued operations and the reclassification of shipping expense from selling and marketing expense to cost of sales. (3) Cash cost of cultivation per gram of dried flower harvested is a non-IFRS measure that are not defined by and does not have any standardized meaning under IFRS; please see the Company’s Q2 2019 MD&A for definitions and calculations. Cash cost of cultivation excludes significant post-harvest costs including but not limited to extraction, packaging and shipping which need to be added to arrive at cost of sales when inventory is sold. 4 703454 N.B. Inc. 5 The forward-looking estimates of additional production capacity and costs related thereto are based on a number of material factors and assumptions. Please see the Company’s Q2 2019 MD&A. 6 The Company has no investment or ownership in any entity in the United States nor does it provide any products or services to entities in the United States.

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