Organigram Receives Health Canada Approval for an Additional 17 Cultivation Rooms in Phase 4A

Published: June 25, 2019

Organigram Receives Health Canada Approval for an Additional 17 Cultivation Rooms in Phase 4A

Organigram Holdings Inc. has received approval from Health Canada for the licensing of 17 additional cultivation rooms within the Phase 4A/4B perimeter of the building. Thirteen of 31 Phase 4A cultivation rooms originally contemplated have previously been licensed. The 31st room initially contemplated for Phase 4A is being moved from the Company’s 4A plans to its 4B licensing plans thereby adjusting Phase 4A from 31 to 30 rooms and Phase 4B from 32 rooms to 33 rooms.

The approval of the new cultivation rooms represents 14,000 kg/yr of increased target production capacity for total licensed production capacity of 61,000 kg/yr (down from 62,000 kg/yr as a result of the room moved from Phase 4A to 4B). This change was made to optimize licensing and construction scheduling and continuity.

“Sustainable growth, exceptional quality and constant innovation are the pillars of our overall strategic approach,” said Greg Engel, CEO, Organigram. “We are proud to continue to increase our physical capacity to meet the needs of cannabis consumers across the country while also bringing new thinking and technology to our production.”

As a result of this approval, cannabis plants will be moved into these new cultivation rooms on a rolling basis commencing immediately. The Company anticipates being able to begin to harvest product from these newly onboarded rooms by the end of September, based on its historical cultivation timelines with the ability to ship dried flower as early as mid-fall of 2019.

Subsequent Health Canada licensing amendment submissions will follow expecting to allow for a continuous approval cycle of the remaining 33 Phase 4B cultivation rooms, mirroring the successful approach used with the Company’s Phase 2, 3 and 4A expansions.

The full Phase 4 expansion represents an aggregate of 77,000 kg of additional annual capacity and is being completed in a series of stages (4A: 25,000 kg; 4B: 28,000 kg; and 4C: 24,000 kg) with final construction expected to be completed by the end of calendar 2019. Once fully licensed and operational, the expansion is expected to bring the Company’s annualized target production capacity to approximately 113,000 kg of dried flower equivalents.

“Organigram’s continued expansion reflects ongoing growth in the cannabis marketplace, including increasing demand as new retail stores come online in Alberta, Ontario, Quebec and British Columbia,” explains Engel. “The expansion of our facility and production capacity will help ensure we have additional product for extraction for the launch of the edibles and derivatives market before the end of 2019.”

As previously disclosed, a Phase 5 refurbishment is also underway for an edibles and derivative facility and additional in-house extraction capacity.

Recent News

View All News Items

Latest Article

Artificial Intelligence, Learning and Explosive Growth in Cannabis

Artificial Intelligence, Learning and Explosive Growth in Cannabis

Organizations operating in the industry have a distinct need for clear communication across multiple departments and sophisticated ways of training new employees quickly to ensure compliance, efficiency and more. Companies looking to grow and capitalize need to be agile and have the ability to train employees on the latest information necessary for success.

Read Article