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Earlier this week, Canadian licensed cannabis producer OrganiGram (TSXV: OGI) (OTC: OGRMF), based in New Brunswick, announced a first-of-its-kind deal, with the provincial government giving the company up to $990,000 over the next three years in the form of payroll rebates. The deal resulted in some political backlash for Premier Brian Gallant, and OrganiGram CEO Denis Arsenault defended it in an interview with CBC.
Arsenault said the government funding will allow OrganiGram to increase its production capacity from the current $25 million in annual sales to as much as $200 million.
He laid out the case that legalization in Canada will result in an $5 billion market that can’t be adequately supplied by the current producers with their existing capacity. He expects the company, which currently has 43 employees, could hire more than 300, though the potential rebates apply only to 113 (at $8761 each) for those who are paid at least $40,000 per year for three years.
Listen to the interview or read Vanessa Blanch’s “OrganiGram CEO Denis Arsenault defends government funding”: http://www.cbc.ca/news/canada/new-brunswick/denis-arsenault-organigram-government-funding-1.3516115
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