Facility Expansion Remains on Schedule to Increase Capacity and Further Improve Efficiencies of Scale
MONCTON, New Brunswick–(BUSINESS WIRE)–Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI), the parent company of Organigram Inc. (the “Company” or “Organigram”), a leading licensed producer of cannabis, is pleased to announce that effective September 6, 2019 it has received Health Canada’s approval for the licensing of 17 additional cultivation rooms under the Cannabis Regulations.
The new cultivation rooms represent approximately 15,000 kg/yr1 of increased target production capacity. These are the first 17 rooms licensed within the Company’s Phase 4B expansion and now brings the Company’s Moncton facility to annualized licensed capacity to a target of 76,000 kg1.
The licenses are valid until March 27, 2020 and subject to terms and conditions.
“Once again, we are pleased to receive licensing approval consistent with our expectations and the streamlined process we have experienced to date. Our Phase 4 facility expansion remains on schedule to meet growing demand and further contribute to efficiencies of scale,”
– explains Greg Engel, CEO, Organigram.
As a result of this approval, cannabis plants will be moved into these new rooms on a rolling basis commencing immediately. The Company anticipates harvesting product from these new rooms by the end of November assuming normal cultivation timelines. After drying and other post-harvest processing (including packaging) dried flower from these additional rooms is expected to be available for sale to patients and customers in the Company’s fiscal quarter ending February 29, 2020.
Substantial construction of the entire Phase 4B stage remains on schedule for completion in September 2019 and the Company also anticipates submitting the licensing amendment for the remaining 16 Phase 4B cultivation rooms later this month.
The perimeter of Phase 5 of the Company’s expansion, which will include an edibles and derivative product facility and more extraction capacity, is also planned for this Health Canada licensing submission.
This article is written and published by The Cannabis Stock
Disclaimer : The Cannabis Stock wants to promote the cannabis market with the best publication on the market. The Cannabis Stock does not recommend selling or buying any of the company mentioned and is not responsible for any losses that may result.