Or­gan­i­gram ar­ranges $10-mil­lion loan with Farm Credit

Stockwatch Daily - - CONSUMER GOODS - Mr. Greg Engel re­ports

OR­GAN­I­GRAM HOLD­INGS Inc. has se­cured a loan from Farm Credit Canada (FCC) in the amount of $10-mil­lion, which will be used to fi­nance the ex­pan­sion of the com­pany’s Monc­ton cam­pus. The debt is for a term of five years at a vari­able rate of in­ter­est, and cur­rently at

6.70 per cent. The debt is se­cured against cer­tain as­sets of Or­gan­i­gram. “Or­gan­i­gram is wholly com­mit­ted to meet­ing the sig­nif­i­cant and grow­ing de­mand for high-qual­ity cannabis across Canada and stand­ing ready to take on new op­por­tu­ni­ties around the world,” said Greg Engel, chief ex­ec­u­tive of­fi­cer, Or­gan­i­gram. “We are very proud to be in­vest­ing once again in our state-of-the-art fa­cil­ity lo­cated here in Monc­ton, N.B., in­creas­ing our pro­duc­tion ca­pac­ity and fos­ter­ing cannabis growth ex­per­tise.”

Re­cent fa­cil­ity ex­pan­sion Cur­rently, con­struc­tion con­tin­ues as planned on phases 4A and 4B of the com­pany’s

ex­pan­sion. This ex­pan­sion will con­tinue to in­crease Or­gan­i­gram’s pro­duc­tion ca­pac­ity with the ad­di­tional state-of-the-art grow rooms com­ing on line in April, 2019 (phase 4A), and Au­gust, 2019 (phase 4B), in­creas­ing the com­pany’s tar­get pro­duc­tion ca­pac­ity to 62,00 kilo­grams per year and 89,000 kilo­grams per year, re­spec­tively. “The ex­pan­sion of our fa­cil­ity rep­re­sents the ex­cep­tional rep­u­ta­tion of our team and prod­ucts in the in­dus­try and among cus­tomers, and a fo­cused strate­gic plan to en­sure our con­tin­ued global lead­er­ship,” said Mr. Engel. “This in­crease in tar­get pro­duc­tion ca­pac­ity fur­ther demon­strates Or­gan­i­gram’s com­mit­ment and abil­ity to sup­port its partners and the grow­ing de­mand across Canada for high-qual­ity adult recre­ational and med­i­cal prod­ucts.”

As of Oct. 24, 2018, power of­fi­cially be­gan flow­ing from the com­pany’s new sub­sta­tion. Hav­ing a peak power ca­pac­ity of 40 megawatts, this sub­sta­tion will pro­vide much cleaner elec­tri­cal sup­ply, im­prove the com­pany’s elec­tri­cal con­sump­tion ef­fi­ciency and lower the com­pany’s main­te­nance cost on equip­ment. “In­no­va­tion and tech­nol­ogy have al­ways been a cor­ner­stone of Or­gan­i­gram’s suc­cess and growth,” said Mr. Engel. “Look­ing to the fu­ture, we con­tinue to iden­tify ways to max­i­mize the ef­fi­ciency of the

pro­duc­tion process and re­duce our over­all re­source con­sump­tion.”

About Or­gan­i­gram Hold­ings Inc. Or­gan­i­gram Hold­ings 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 Hold­ings 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. In an­tic­i­pa­tion of the le­gal adult use recre­ational cannabis mar­ket in Canada, Or­gan­i­gram Hold­ings has de­vel­oped a port­fo­lio of brands, in­clud­ing The Edi­son Cannabis Com­pany, Ankr Or­gan­ics, Trail­blazer and Trailer Park Buds. Or­gan­i­gram Hold­ings’ pri­mary fa­cil­ity is lo­cated in Monc­ton, N.B., and the com­pany is reg­u­lated by the Ac­cess to Cannabis for Med­i­cal Pur­poses Reg­u­la­tions (ACMPR).

We seek Safe Har­bor.

Peter Ami­rault, De­nis Charles Ar­se­nault, David James Do­herty, Kenneth Mit­ton, Larry Rogers, Roger A Rogers

(OGI) Shares: 129,066,560

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