Agreement estimated to have a minimum retail
value between $8 million -
$12 million per year
Highlights
- Organigram agrees to supply Prince
Edward Island a minimum of 1,000,000 grams per year
- Organigram selected as one of 3 licensed producers (LPs)
selected to supply adult-use recreational cannabis to Prince Edward Island market
- Agreement secures inventory for the adult recreational
market in Prince Edward
Island
MONCTON, NB, Jan. 16, 2018 /CNW/ - Organigram Holdings Inc.
(TSX VENTURE:OGI) (OTCQB:OGRMF) (the "Company" or
"Organigram"), a leading licensed producer of medical
marijuana based in Moncton, New
Brunswick, is pleased to announce that it has entered into a
memorandum of understanding ("MOU") with the Government of
Prince Edward Island (PEI) for the
distribution of cannabis to the adult-use recreational market.
Through the MOU, PEI secures a supply of at least one million
grams of recreational marijuana per year from Organigram.
"We are excited to finalize this agreement with the Government
of Prince Edward Island," says
Greg Engel, Organigram's Chief
Executive Officer. "Particularly as a Maritime-based company, we
are proud to support the Province's efforts to move toward a
responsible, sustainable and successful adult-use recreational
market."
"The province is very pleased to partner with Organigram in
securing a safe supply of cannabis for the PEI market," said
Minister of Finance Heath MacDonald.
"Islanders who choose to partake in recreational cannabis in PEI
can be confident that the products available to them will be safe,
of high-quality, and provided through licensed suppliers committed
to cannabis education and responsible use."
The PEI supply arrangement follows a memorandum of understanding
Organigram signed in 2017 with the Government of New Brunswick (GNB) to supply a minimum of 5
million grams of cannabis a year. The GNB MOU is estimated to have
a retail value of between $40 million
to $60 million per year.
"There is tremendous cannabis expertise here in the Maritimes,"
says Mr. Engel. "We have worked hard to assemble a local,
world-class team of experts. We applaud PEI's recognition of our
homegrown industry leadership and its commitment to building – and
formalizing – positive and productive working relationships with
regionally-based companies like Organigram."
As part of discussions with PEI, and as reflection of the
organizations' shared commitment to the safe and responsible
implementation of new federal rules related to the adult-use
recreational cannabis market, Organigram will also be working
closely with the Government of PEI to develop and contribute to
social responsibility programs that will provide ongoing education,
helping ensure public safety remains a priority.
"There is no successful cannabis market or industry without an
unwavering commitment to public safety," says Ray Gracewood, Chief Commercial Officer,
Organigram. "We are proud to work with PEI and share their
vision of a thriving, responsibility-first recreational
market."
For more information, visit www.Organigram.ca
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 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 Access to
Cannabis for Medical Purposes Regulations ("ACMPR").
Organigram has been ranked in the top ten Clean Technology
& Life Sciences Sector on the TSX Venture Exchange 50.
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 which
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 definitive documentation, 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.
SOURCE OrganiGram