MONCTON, NEW BRUNSWICK--(Marketwired - July 25, 2016) - Organigram Holdings Inc. (TSX VENTURE:OGI)(OTCQB:OGRMF) (the "Company") is pleased to report its financial results for the third quarter ending May 31st, 2016. All amounts are expressed in Canadian dollars unless stated otherwise.
Highlights from the quarter include:
- 27% growth in sales compared to the prior quarter
- Net revenue of $8.47 per gram sold
- EBITDA1 growth to $695,721 from $370,139 in the prior quarter
| Summary Quarterly Results | ||
| Operating/Financial Metric | Q3 2016 (May) | Q2 2016 (February) |
| Revenue | $ 1,806,849 | $ 1,425,466 |
| Grams Sold | 213,270 | 169,215 |
| Gross Margin | 87.6 % | 76.0 % |
| Net Income (Loss) | $367,720 | $55,267 |
| EBITDA1 | $ 695,721 | $ 370,139 |
Organigram continued its positive operating momentum and generated sales of $1,806,849 which represents a 27% increase compared to the previous quarter. Grams sold for the quarter increased to 213,270, resulting in an average net revenue per gram sold of approximately $8.47.
The Company continues to focus on process and cost initiatives and is pleased to note a significant increase in plant yields and a corresponding decrease in its production costs. Organigram's cash cost per gram produced during the quarter was $1.292. These efficiencies help validate the changes the Company has made to its in-house production practices and strengthen Organigram's strategic positioning as one of the lowest cost MMPR producers in Canada.
"We are very pleased with our 3rd quarter results and as things continue to develop post quarter, we remain focused and drive our efforts to be one of Canada's lowest cost producers" states Denis Arsenault, CEO of Organigram Inc.
Subsequent to the quarter, Organigram closed its previously announced bought deal financing for net proceeds of $10,360,350, received an amendment to its MMPR license allowing for the sale of cannabis oil extracts, and submitted a request to Health Canada for an increase to Organigrams licensed sales capacity ("LSC") for its facility in Moncton, New Brunswick.
"At Organigram we are creating employment and economic growth opportunities for Atlantic Canadians, a reliable and high quality product for our customers, and value and efficiencies for our shareholders. Our low cost of production, coupled with our organic product offering, strong balance sheet, and near term growth prospects position Organigram favourably in both the existing medicinal and forthcoming recreational marketplace." says Arsenault.
Further detailed financial information is available in our quarterly posting on SEDAR.
1. EBITDA is defined as net income (loss) excluding depreciation and financing costs.
2. Cash cost to produce per gram is a non-IFRS measure and is equal to cost of sales of produced grams, excluding fair value adjustment to biological assets and inventory, manufacturing depreciation incurred, and packaging costs; divided by produced grams in the quarter.
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 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.
Contact Information:
Director of Investor and Media Relations
Organigram Holdings Inc.
(506) 801-8986
www.organigram.ca