Organigram Reports First Quarter Fiscal 2024 Results

In this article:

(Graphic: Business Wire)
(Graphic: Business Wire)

Achieved positive cash flow from operations, solidified #2 market position in Canada among licensed producers, significantly improved margins sequentially quarter-over-quarter, and closed first $41.5 million tranche of previously announced $124.6 million investment from BAT

HIGHLIGHTS

  • $124.6 million strategic investment from BAT announced in November 2023 approved by shareholders, with first of three tranches now funded at $3.22 per share for proceeds of $41.5 million

  • Achieved positive Adjusted EBITDA1 and positive cash flow from operations of $7.7 million

  • Improved sequential quarter-over-quarter adjusted gross margin2 from 17% in Q4 Fiscal 2023 (references to "Fiscal 2023" are to the 13-month period from September 1, 2022 through September 30, 2023) to 31% in Q1 Fiscal 2024

  • Maintained #2 market position in Canada for the last 5 consecutive months as of the end of Q1 Fiscal 20243

  • Held the #1 position in milled flower, the #1 position in concentrates, the #2 position in edibles, and the #3 position in pre-rolls3

  • Reintroduced Edison JOLTS to the market, achieving the #2 brand position in the capsules and ingestible extracts category in December 20233

  • Launched 22 SKUs in the quarter

  • Completed first craft harvest resulting from the completed expansion of the Company's Lac-Supérieur facility

  • Completed planting first grow room using seed-based production resulting from technology acquired from the strategic investment in US-based Phylos Bioscience Inc. ("Phylos")

  • Due to the achievement of THCV concentration and aroma specific milestones from F1 seeds, Organigram advanced the second tranche of US$2.75 million to Phylos for a total current investment of US$6.0 million in senior secured convertible loans

  • Applied for EU-GMP certification of Moncton facility in November 2023 and awaiting audit

  • Strong balance sheet with negligible debt and $54.6 million in cash (not including $41.5 million tranche of BAT investment which closed in January)

TORONTO, February 13, 2024--(BUSINESS WIRE)--Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI), (the "Company" or "Organigram"), a leading licensed producer of cannabis, announced its results for the first quarter ended December 31, 2023 ("Q1 Fiscal 2024").

"We certainly kicked off fiscal 2024 with a bang", said Beena Goldenberg, Chief Executive Officer. "By closing the first tranche of our $124.6 million follow-on investment from BAT shortly after quarter end, we have removed a significant amount of risk from our business while enhancing the key competitive advantages that our team worked diligently to put into place in Fiscal 2023. We can now fully leverage our world-class facilities, market leadership in several categories, and cutting-edge research and development capabilities to increase Organigram's reach both within the Canadian market and beyond."