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OrganiGram: Strong Q2 Sales and Inventory Highlights
MONCTON, NEW BRUNSWICK–(Marketwired – March 11, 2016) – OrganiGram Holdings Inc. (TSX VENTURE:OGI) (OTCQB:OGRMF) is pleased to announce its revenue results for the three months ended February 29th, 2016. All amounts are expressed in Canadian dollars, unless otherwise stated.
Revenue for the three months ended February 29th, 2016 is approximately $1,400,000 representing a 40% increase over the previous quarter. Organigram is pleased with their strong Q2 revenue growth. In addition, the company would also like to provide a detailed analysis of their inventory numbers.
“Organigram is pleased to provide clarity on its Inventory valuations” said Denis Arsenault, Organigram CEO. “We are a new industry and Organigram wishes to be transparent and help the investor community understand its financial results and forecasting.”
Inventory at quarter ending February 29th, 2016 was IFRS adjusted to approximately $3,450,000.
The above inventory was comprised of:
- $870,000 of Bud/Flower at approximately $3.80 per gram.
- $597,000 of Sweet Leaf at approximately $3.45 per gram.
- $1,975,000 of Live plant material
- Approximate quantity of live plants on hand – 10,000
Important to note that Organigram does not assign any monetary value to Fan Leaves. Fan leaves could be utilized to produce oil extracts. However, they are extremely low in THC/CBD levels and this makes the product for inventory purposes negligible.
Sweet Leaf is maintained at a lower inventory value per gram, as the product would sell for less than Bud/Flower and will be utilized to make oil extracts. Sweet Leaf contains less THC/CBD per gram then Bud/Flower, therefore requires more grams to produce the equivalent quantity of Oil extracts compared to Bud/Flower.
The above assigned inventory values per gram should permit Organigram Inc. to produce and sell oil extracts at similar or superior margins to the sale of Bud/Flower.
We also would like to take this opportunity to announce that Mrs. Monique Imbeault, who has recently joined our Board of Directors, has accepted the role of Chairman of the Board and Audit Committee. Mrs. Imbeault’s expertise will be of extreme value as we lead the company through its continued expansion.
Furthermore, the previously announced construction has started within the facility and we would anticipate having six more growing rooms on line by late fall with three of these rooms in production by early summer. This construction will bring our annual capacity to 3,500 kilograms.
Organigram Holdings Inc. is a TSX Venture Exchange listed company who’s wholly owned subsidiary, Organigram Inc., is a licensed producer of medical marijuana in Canada. Organigram is focused on producing the highest quality, condition specific medical marijuana for patients in Canada. Organigram’s facility is located in Moncton, New Brunswick and the Company is regulated by the Marihuana for Medical Purposes Regulations.
On behalf of the board of directors,
Denis Arsenault
Director and CEO
OrganiGram Holdings Inc.
The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.
This news release contains forward-looking information, which involves known and unknown risks, uncertainties and other factors that may cause actual events to differ materially from current expectation. Important factors – including the availability of funds, the results of financing efforts, 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 (see www.sedar.com). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press 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.
Giselle Doiron
Director of Investor and Media Relations
OrganiGram Holdings Inc.
Office – (506) 801-8986
Cell – (506) 380-0132
www.organigram.ca]
Original press release: http://www.marketwired.com/press-release/organigram-strong-q2-sales-and-inventory-highlights-tsx-venture-ogi-2105145.htm
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