TSX Venture (OGI) OTCQB Venture Marketplace (OGRMF) Organigram is a licensed producer of medical marijuana and regulated by Health Canada.

Transcription

1 TSX Venture (OGI) OTCQB Venture Marketplace (OGRMF) Organigram is a licensed producer of medical marijuana and regulated by Health Canada.

2 Disclaimers and Cautionary Statements January 31 st, The information contained in this presentation is provided by Organigram ( OGI ) for informational purposes only and does not constitute an offer to issue or arrange to issue, or the solicitation of an offer to issue, securities of OGI or other financial products. The information contained herein is not investment or financial product advice and is not intended to be used as the basis for making an investment decision. The views, opinions and advice provided in this presentation reflect those of the individual presenters, and are provided for information purposes only. The presentation has been prepared without taking into account the investment objectives, financial situation or particular needs of any particular person. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of OGI nor its directors, officers, employees or agents, nor any other person accepts any liability, including, without limitation, any liability arising out of fault or negligence, for any loss arising from the use of the information contained in this presentation. Except for statements of historical fact, this presentation contains certain forward-looking information within the meaning of applicable securities laws. Forward-looking information is frequently characterized by words such as plan, expect, project, intend, believe, anticipate, estimate and other similar words, or statements that certain events or conditions may or will occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements, including, among others, OGI s future growth and development, the ability to create value through mineral property transactions, the proposed plans of any of OGI s equity holdings, as well as those risk factors identified in OGI s Filing Statement and other disclosure documents available at under OGI s name. OGI undertakes no obligation to update forward-looking information if circumstances or management s estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. This presentation does not constitute an offer of shares for sale in the United States or to any person that is, or is acting for the account or benefit of, any U.S. person (as defined in Regulation S under the United States Securities Act of 1933, as amended (the Securities Act ) ( U.S. Person ), or in any other jurisdiction in which such an offer would be illegal. OGI s shares have not been and will not be registered under the Securities Act. 2

3 Medical Marijuana In Canada On April 1, 2014, Marihuana for Medical Purposes Regulations ( MMPR ) came into effect Program was replaced by the Access to Cannabis for Medical Purposes Regulations ( ACMPR ) in August, 2016 Patients obtain a prescription from a physician, stating quantity of grams permitted per day Licensed producers (LPs) register patients directly and ship medicine direct to the patient s home Enrolment has grown over 10% per month during ; and now stands at over 130,000 patients Medical Market Growth Projection Recent political developments have opened the door to recreational legalization 3

4 Political Developments Recreational Marijuana Oct-2015: The Trudeau Liberals win a majority government Canadian parliamentary system permits majority government to pass legislation unopposed until the next federal election, October Dec-2015: Throne speech reaffirms Trudeau plan to legalize pot 2 April-2016: Health Minister announces intent to legalize marijuana in 2017 at the United Nations General Assembly June-2016: Federal task force appointed to review and report on marijuana legalization Nov-2016: Federal task force provides a final report on Cannabis Legalization and Regulation 3 : We will legalize, regulate, and restrict access to marijuana. 4 Justin Trudeau, Prime Minister of Canada ESTABLISHING A SAFE AND RESPONSIBLE SUPPLY CHAIN, ENFORCING PUBLIC SAFETY & PROTECTION, MEDICAL ACCESS AND IMPLEMENTATION 1 Source: Liberal government. 2 Source: Global News, December 4, 2015 Throne speech reaffirms Trudeau plan to legalize pot. 3 Source: November 30 th, 2016 A Framework for the Legalization and Regulation OF Cannabis in Canada 4

5 Overview of Organigram Premium Organic Product Favorable Cost Structure Scalable Production Facilities Differentiated Products and Brands Management - Capitalized Balance Sheet 5

6 Overview of Organigram Strategic Location Only producer with a license to sell, east of Québec - Bilingual branding and services Favorable Cost Structure Optimized, low cost producer cents/kwh versus ~ 18 cents/kwh in Ontario - Low operating costs and wages Scalable Production Facilities Two buildings on 14 acres of land Current production capacity increase of 4,200 kg/yr Ongoing fully financed expansion to over 26,000 kg/yr (est Dec/18) Including a 15,000 sq ft extracts processing facility Differentiated Products and Brands The Green Solution (TGS) & NectarBee Trailer Park Boys Inside Production Facility: Moncton, New Brunswick Prudent Management Team Experienced and proven senior management team Aligned with investors (~15% ownership) Note: Production estimates are based on a targeted yield of 1.8 lbs (817 grams) per light and 5.5 turns per year. 6

7 Facility Highlights: Ongoing Expansion On August 31 st Organigram strategically acquired the property adjacent to the existing licenced facility 136,000 sq ft industrial building situated on 10 acres Includes ongoing annual rental income of $770,000 blue chip tenant When completed, the fully funded expansion will total 227,503 square feet Expected pro-forma production capacity of over 26,000 kg/yr Planned In-house extracts processing facility spanning ~15,000 square feet Expansion Overhead View Expansion Specifics Completion Phase Status Date Area Phase 1 Completed 31,160 Phase 2 Under Construction Feb. '17 6,706 Phase 3 Under Construction Oct. '17 81,673 Phase 3A Under Construction Oct. '17 13,746 Phase 4 New Building Feb. '18 35,715 Leased Space 58,503 Completed Total Area (Sq. Ft.) 227,503 7

8 Brand Development - The Green Solution TM / nectarbee TM Entered into an exclusive Canadian product development and distribution agreement with TGS International Brands and Product Offering Commercial scale extracts and processing capability Portfolio of over 225 unique cannabis products Proven market leader based in Denver, Colorado Over $100mln in cumulative product sales 13 established retail locations Award winning cannabis product lines Recognized premium brands and product offering Pending retail expansions into: Illinois, Florida, Maryland and Oregon TGS Strategically Positions Organigram for a Recreational Market 8

9 Brand Development - Trailer Park Boys TM On November 23 rd Organigram announced a licencing agreement with the Trailer Park Boys (TPB Productions Ltd.) Trailer Park Boys Organigram will be the exclusive Canadian: Cannabis Producer Business Partner and Brand Developer Organigram will work to develop branding, packaging, and a competitive product portfolio targeted towards recreational marijuana consumers and distributed exclusively by Organigram Consideration to include a combination of cash royalties and other non-monetary considerations Branding and Value Added Products are Essential in a Recreational Market 9

10 Key Performance Indicators $1.69 Q1, 2017 $8.75 Q1, % Sales Growth $510,015 Cost of Goods Sold Low cost Producer (excludes f.v. adjustment to bioassets and inventory) Avg. Selling Price Per Gram of Dried Cannabis to Medical Patients Sales Increased Year over year (Q vs Q1 2016) Cash Flow Q

11 Contact Information and Share Capitalization Organigram Holdings Inc. 35A English Dr. Moncton, NB, E1E 3X3 Toll Free: Local: Fax: Giselle Doiron Director of Investor & Media Relations Direct Line: Cell: Toll Free: Note: Figures as of December 31 st, 2016 Share and Ownership Structure Issued and Outstanding 100,911,922 Warrants ($1.27 weighted avg. strike) 6,163,391 Options ($1.14 weighted avg. strike) 4,816,182 Fully Diluted 111,891,495 Management / Insider Ownership 15% Institutional Ownership 25% TSX Venture OGI OTCQB Venture Marketplace OGRMF 11

12 Appendix A: Management Denis Arsenault Chief Executive Officer and Director Mr. Arsenault has spent the past 30 years as a successful entrepreneur, building, running and selling several profitable businesses. As the Chief Executive Officer of the Company, Mr. Arsenault has focused on growing the Company into a sustainable and successful employer in Moncton. His extensive knowledge and experience in building successful enterprises has helped to establish a strong management team and a modern production facility. Mr. Arsenault holds a Bachelor of Administration degree from the Université de Moncton. Larry Rogers Chief Operating Officer and Director Mr. Rogers was the Chief Executive Officer and co-founder of CLS Lexi-tech Ltd., an Irving Group owned company, Canada s largest private language service provider. He began his career in the information technology field, before going on to play a key role in the creation and growth of Lexi-tech International Inc., first as Vice-President of Operations then as President from Mr. Rogers holds a Bachelor of Science degree, with a major in computer science degree from the University of New Brunswick. Peter R. Hanson Interim Chief Financial Officer Peter joined Organigram Inc. in August 2014 and before his most recent appointment to interim CFO he held the position of Director of Finance & Administration. Prior to his joining Organigram Inc., Peter had 20 years of experience in the field of finance and administration primarily in the manufacturing and services sector. Peter possesses a demonstrated track record in finance, human resource management and strategic planning. Peter holds a Bachelor of Commerce degree from Mount Allison University. Peter also holds a Chartered Professional Accountant designation and a Chartered Professional in Human Resources designation, in the Province of New Brunswick. Raymond Gracewood Chief Commercial Officer As the previous Senior Director of Sales and Marketing for Moosehead Breweries Ltd., Mr. Gracewood is a leading brand and marketing professional in Atlantic Canada. With more than 15 years of experience in the marketing space, he is a strong speaker on brand, packaging and positioning, both locally and throughout North America. He has extensive experience in building and developing brands, positioning and segmentation. Mr. Gracewood holds a Bachelor of Business Administration degree, from the University of New Brunswick. 12

13 Appendix B: Board of Directors Monique Imbeault Chairman of the Board Mrs. Imbeault is currently Chief Executive Officer of General Financial Corporation Ltd. ( GFC ), a holding company with a diverse portfolio of investments. Prior to joining GFC, she was Counsel with McInnes Cooper. She received her LL.B from the Université de Moncton and a BSC, (Chemistry) and an Engineering Certificate from Mount Allison University. Mrs. Imbeault is currently on the Board of XL-ID Solutions Inc. and of Resilia Inc., two privately held companies; she is also Chair of the Board of the New Brunswick Health Research Foundation and the Atlantic Institute of Neurosciences and a member of the Board of Directors of the CHU Dumont Foundation. She has sat on boards of publicly traded companies and was previously Chair of the Board of Imvescor Restaurant Group Inc. Mrs. Imbeault has completed the Director Education Program at the Rotman School of Management and has received her ICD.D designation, granted by the Institute of Corporate Directors. Michel Bourque Director Mr. Bourque brings more than 25 years of sales and marketing leadership experience in the pharmaceutical industry, having worked in the branded Rx, generic Rx and branded/private label OTC sectors. Over this time, he has successfully led teams in the specialty medicine, hospital and retail key account areas driving profitable growth through strategic planning and the implementation of innovative value-added programs. Mr. Bourque holds a Bachelor of Business Administration degree from l Université de Moncton. Peter Amirault Director Mr. Amirault is currently the President of BML Group Limited in Toronto, a holding company with interests in real estate development and private investments. Prior to joining BML Group, Peter held varying executive roles including: President of Swiss Chalet North America for the Cara Group of Companies, CEO of Creemore Springs Brewery Ltd, Senior Vice President of Molson Coors Canada, Managing Director of Sleeman Brewing Ltd, along with senior roles at Nestle Canada and The Premium Beer Company of Toronto. Peter holds a BBA from Acadia University and an MBA from The Schulich School of Business. Peter brings a wealth of knowledge with his previous board experience and roles at senior management levels. Dr. Kenneth Mitton Director Dr. Mitton is a highly respected physician, practicing in Moncton, New Brunswick. Dr. Mitton has practiced medicine for over 30 years as a family doctor. He also advises a number of large corporations in New Brunswick, with respect to occupational health matters. Dr. Mitton has previously served as the Chief of Staff of the South-East Regional Health Authority (now the Horizon Health Network) and is currently the medical director of the Moncton Hospital. Dr. Mitton holds a Bachelor of Science and a Doctor of Medicine Degree from Dalhousie University. Denis Arsenault Chief Executive Officer and Director Larry Rogers Chief Operating Officer and Director 13