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Farm Credit Canada Pumps $10MM Into Organigram Cannabis Expansion Plans

December 10, 2018, 09:10 AM
Filed Under: Cannabis

Organigram Holdings Inc, the parent company of Organigram Inc , a  licensed producer of cannabis, announced it has secured a loan from Farm Credit Canada in the amount of $10MM, which will be used to finance the expansion of the Company's Moncton campus.  The debt is for a term of five years at a variable rate of interest, and currently at 6.70%.  The debt is secured against certain assets of Organigram.

"Organigram is wholly committed to meeting the significant and growing demand for high quality cannabis across Canada and standing ready to take on new opportunities around the world," says Greg Engel, CEO, Organigram. "We are very proud to be investing once again in our state-of-the-art facility located here in Moncton, New Brunswick, increasing our production capacity and fostering cannabis growth expertise".

Currently, construction continues as planned on Phase 4A and 4B of the Company's expansion. This expansion will continue to increase Organigram's production capacity with the additional state-of-the-art grow rooms coming online in April 2019 (Phase 4A) and August 2019 (Phase 4B) increasing the Company's target production capacity to 62,00 kg/yr and 89,000 kg/yr, respectively.

"The expansion of our facility represents the exceptional reputation of our team and products in the industry and among customers, and a focused strategic plan to ensure our continued global leadership", says Greg Engel, CEO, Organigram. "This increase in target production capacity further demonstrates Organigram's commitment and ability to support its partners and the growing demand across Canada for high quality adult recreational and medical products".

As of October 24, 2018, power officially began flowing from the Company's new substation. Having a peak power capacity of 40 megawatts, this substation will provide much cleaner electrical supply, improve the Company's electrical consumption efficiency and lower the Company's maintenance cost on equipment.

"Innovation and technology have always been a cornerstone of Organigram's success and growth," says Greg Engel. "Looking to the future, we continue to identify ways to maximize the efficiency of the production process and reduce our overall resource consumption."

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