Organigram Increases Investment in Phylos After Successful Milestone Achievement
28 Novembro 2023 - 8:00AM
Business Wire
Organigram to advance the conversion of its
grow rooms with custom designed, F1 Hybrid seeds
- Organigram expects to soon be able to begin low-cost production
of high-potency, terpene-rich cultivars destined for various
products and blends across its brand portfolio.
- Organigram is on track to convert more than 30% of its
cultivation space in the Moncton facility to F1 Hybrid seed grow by
end of FY24.
- The high-potency, terpene-rich, indoor-grown cultivars aim to
reduce cost of cultivation by removing additional propagation,
cloning and pre-vegetation steps.
Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI), (the
"Company" or "Organigram"), a leading licensed producer of
cannabis, announced today that Phylos Bioscience Inc. (“Phylos”), a
U.S. cannabis genetics company and provider of production ready
seeds, has achieved the first milestone under the loan agreement
entered into in May 2023 (the “Loan Agreement”) and has closed the
second tranche under the Loan Agreement with Organigram advancing
US$2.75 million to Phylos. This second tranche follows the initial
tranche of US$3.25 million advanced in May 2023 for a total of US$6
million in senior secured convertible loans (“Convertible Loans”)
currently outstanding.
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Organigram’s ongoing trials using Phylos technology have
resulted in highly-uniform, predictable, and fast-growing
seedlings.
The milestone achieved so far consists of:
- 1:1 THCV cultivar at 10%+ THCV potency – delivered
- 3:1 THCV cultivar at target 18% THCV (16% minimum) –
delivered
- 2 THC aroma specific cultivars (in either Berry, Citrus, or
Gas) – four delivered to date
“We have always strived to be at the forefront of innovation
through our commitment to scientific excellence and rigorous
research. Our investment in Phylos was driven by that commitment,
and we are thrilled with the progress we have made and the benefits
we are reaping from this strategic investment,” says Borna
Zlamalik, Senior Vice President, R&D and Innovation at
Organigram. “To further expand and capitalize on this investment in
Phylos, we are preparing the development of additional breeding
programs which aim to deliver a suite of high potency minor
cannabinoid flower to complement the THCV flower, with a focus on
key rare cannabinoids such as CBG, CBC, CBDV and THCP,” he
added.
In August, Organigram launched its first lineup of whole-flower
derived THCV products through the Company’s popular SHRED and newly
re-launched Trailblazer brands enabled by the strategic investment
in Phylos.
Convertible Loan Details
- After funding the second tranche, US$6 million of principal is
outstanding and the Loan Agreement contains a commitment to fund up
to an additional US$2 million no later than May 2025, upon the
completion of certain milestones.
- The Convertible Loans will accrue paid-in-kind interest (“PIK”)
at a rate of U.S. Prime + 3.5% (with an overall cap of 11%) subject
to certain conditions. The maturity date of the Convertible Loans
will be on the fifth anniversary of the Initial Closing Date
subject to one-year extensions and subject to certain conditions.
The Convertible Loans’ principal and payment-in-kind (PIK) interest
outstanding are convertible into common share equity of Phylos
under certain circumstances (including but not limited to federal
legalization or decriminalization of cannabis in the United
States).
About Organigram Holdings Inc.
Organigram Holdings Inc. is a NASDAQ Global Select Market and
TSX listed company whose wholly owned subsidiaries include
Organigram Inc. a licensed producer of cannabis, cannabis-derived
products and cannabis infused edibles in Canada.
Organigram is focused on producing high-quality cannabis for
patients and adult recreational consumers, as well as developing
international business partnerships to extend its global footprint.
Organigram has also developed and acquired a portfolio of legal
adult-use recreational cannabis brands, including Edison, Holy
Mountain, Big Bag O’ Buds, SHRED, SHRED’ems, Monjour, Laurentian,
Tremblant Cannabis and Trailblazer. Organigram operates facilities
in Moncton, New Brunswick and Lac-Supérieur, Quebec, with a
dedicated edibles manufacturing facility in Winnipeg, Manitoba. The
Company is regulated by the Cannabis Act and the Cannabis
Regulations (Canada).
About Phylos Bioscience Inc.
Phylos is a cannabis genetics company focused on producing
genetics for the highest quality varietals that can be grown at
scale in a cost-effective way. Phylos owns and sells products that
are legal under US and Canadian laws – seeds that the US Drug
Enforcement Administration (“DEA”) has deemed are hemp and exempt
from the CSA under US law – and intellectual property related to
the seeds. Phylos supports commercial-scale cultivation with the
industry’s first Production-Ready Seed™: premium, phenotypically
stable, fully feminized F1 hybrid seeds that deliver exceptional
flower quality, potency, vigor, and yield. Phylos also leverages
its proprietary technologies and its cultivation, extraction, and
formulation expertise to provide partners with unparalleled THCV
genetics for natural, safe and effective ingredients.
Forward-Looking Information
This news release contains forward-looking information. Often,
but not always, forward-looking information can be identified by
the use of words such as “plans”, “expects”, “estimates”,
“intends”, “anticipates”, “believes” or variations of such words
and phrases or state that certain actions, events, or results
“may”, “could”, “would”, “might” or “will” be taken, occur or be
achieved and include statements regarding conversion of grow rooms
and reduced cost of cultivation . Forward-looking information
involves known and unknown risks, uncertainties and other factors
that may cause actual results, events, performance or achievements
of Organigram to differ materially from current expectations or
future results, performance or achievements expressed or implied by
the forward-looking information contained in this news release.
Such risks include the factors and risks as disclosed in the
Company’s most recent annual information form, management’s
discussion and analysis and other Company documents filed from time
to time on SEDAR (see www.sedar.com) and filed or furnished to the
Securities and Exchange Commission on EDGAR (see www.sec.gov).
Readers are cautioned not to place undue reliance on these
forward-looking statements. The forward-looking information
included in this news release are made as of the date of this news
release and the Company disclaims any intention or obligation,
except to the extent required by law, to update or revise any
forward-looking information, whether as a result of new
information, future events or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20231128416832/en/
For Investor Relations enquiries: Max Schwartz Director of
Investor Relations investors@organigram.ca Organigram
For Media enquiries: Megan McCrae Senior Vice President of
Marketing and Communications megan.mccrae@organigram.ca
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