Record Net Sales of $3.7 Million for the Quarter and Earnings Per
Share (Basic) of $0.009
MONCTON, NB, April 24, 2018 /CNW/ - Organigram Holdings Inc.
(TSX VENTURE: OGI) (OTCQB:OGRMF) (the "Company" or
"Organigram"), a leading licensed producer of medical
marijuana based in Moncton, New
Brunswick, is pleased to announce its financial results for
the three and six-months ended February 28,
2018.
"We are incredibly proud of what we have achieved in Q2 as we
registered record sales and a profit for the quarter," said
Greg Engel the Company's CEO, "but
we have also significantly bolstered our balance sheet and from an
operational and sales and marketing perspective we are well
positioned to take full advantage of not only the medical market
but also the burgeoning adult recreational and international
opportunities as well."
Operational and Financial Highlights
- Record net sales for both the three-month and six-months ended
February 28, 2018;
- Record sales of cannabis oil for both the three-month and
six-months ended February 28,
2018;
- Record yields per plant in the quarter ended February 28, 2018 with projected improvements in
yields in Q3-2018 which, along with efficiencies in production,
should allow the Company to realize newer lows in production costs
per gram (or gram equivalent) in Q3;
- Registered medical patients climbed to a record 13,000 by the
end of the quarter;
- The Company closed two significant financings in the
quarter. An equity financing (with units issued consisting of
one common share and ½ share purchase warrant) that closed on
December 18, 2017 raising gross
proceeds of $57.5 million and a
convertible debenture offering (unsecured 6% coupon with a
conversion option at $5.42/share)
that closed on January 31, 2017
raising aggregate gross proceeds of $115
million; and
- The Company opened its Phase 2 expansion filling six rooms by
the end of the quarter with the remaining 17 filled subsequent to
the quarter. Organigram began its first harvest from Phase 2
on "4/20" (April 20, 2018).
Summary of Financial Results
|
Three-months
ended
February 28
|
Inc.
(Decr.)
|
Six-months
ended
February
28
|
Inc
(Decr.)
|
(in $000 except
EPS)
|
2018
|
2017
|
2018
|
2017
|
|
|
|
|
|
|
|
Gross
sales
|
$
3,219
|
$ 1,445
|
123%
|
$
5,906
|
$ 3,675
|
61%
|
Sales recovery
(return)
|
$
469
|
$ (2,026)
|
n/m1
|
$
469
|
$ (2,026)
|
n/m
|
Net
sales2
|
$
3,689
|
$ (581)
|
n/m
|
$
6,375
|
$ 1,650
|
286%
|
Cost of sales (incl.
indirect production)
|
$
(1,550)
|
$ (3,029)
|
n/m
|
$
(3,340)
|
$ (3,808)
|
-12%
|
Gross margin
(excluding FV adjustment)
|
$
2,138
|
$ (3,610)
|
n/m
|
$
3,035
|
$ (2,158)
|
n/m
|
FV adjust. on bio
assets and inventories
|
$
4,384
|
$ (367)
|
n/m
|
$
5,106
|
$ (1,056)
|
n/m
|
Gross
margin
|
$
6,523
|
$ (3,977)
|
n/m
|
$
8,141
|
$ (3,214)
|
n/m
|
|
|
|
|
|
|
|
General and
admin
|
$
(2,002)
|
$ (914)
|
119%
|
$
(3,187)
|
$ (1,455)
|
119%
|
Sales and
marketing
|
$
(1,147)
|
$ (705)
|
63%
|
$
(2,280)
|
$ (1,372)
|
66%
|
Share-based
compensation (non-cash)
|
$
(1,154)
|
$ (291)
|
296%
|
$
(1,899)
|
$ (565)
|
236%
|
Net financing
costs3
|
$
(1,143)
|
$ 133
|
n/m
|
$
(1,099)
|
96
|
n/m
|
Net income
(loss)
|
$
1,078
|
$ (5,755)
|
n/m
|
$
(324)
|
$ (6,511)
|
-95%
|
|
|
|
|
|
|
|
EPS
(basic)
|
$
0.009
|
$ (0.059)
|
n/m
|
$
(0.003)
|
$ (0.071)
|
n/m
|
EPS
(diluted)
|
$
0.008
|
$ (0.059)
|
n/m
|
$
(0.003)
|
$ (0.071)
|
n/m
|
|
|
|
|
|
|
|
Sales of (in
thousands):
|
|
|
|
|
|
|
Dried cannabis flower
(gr)
|
238
|
142
|
68%
|
433
|
402
|
8%
|
Cannabis oil sold
(ml)
|
552
|
139
|
297%
|
971
|
216
|
350
|
|
1 Not
meaningful.
|
2 Net
sales consist of gross sales and sales recovery (return) and
includes dried flower and cannabis oil sales, sales of accessories
and revenues from the Company's wholly-owned subsidiary Trauma
Healing Center.
|
3 Net
financing costs consist of financing costs less any investment
income earned.
|
Balance Sheet Highlights
At the end of the quarter the Company has:
- $178 million in cash and
short-term investments (up from $34
million at the August 31, 2017
year-end);
- $70 million in property, plant
and equipment (up from $45 million at
year-end);
- $12 million in current
liabilities (up from $6 million at
year-end);
- $96 million in long-term debt and
convertible debentures (up from $3
million at year-end);
- 125 million outstanding shares as at February 28, 2018 (104 million at year-end);
and
- 140 million fully-diluted shares as at February 28, 2018 (114 million at year-end) –
including 7.7 million options (Aug.31/17 – 6.3 million), 8.1
million warrants (Aug.31/17 – 4.3 million), and 21.2 million shares
(Aug.31/17 - nil) if the convertible debentures are converted at
$5.42.
Outlook
- Phase 3 expansion expected to be complete for the start of
filling of rooms with first cannabis plants by June 1, 2018 bringing the Company's pro-forma
run-rate capacity to 36,000 kg/yr;
- The Company intends to launch its adult-recreational brand
strategy on or about May 15, 2018;
and
- Organigram expects to announce one or more strategic or
international investments in the upcoming quarter.
For more information, visit www.Organigram.ca
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 Access to
Cannabis for Medical Purposes Regulations ("ACMPR").
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this 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
expectations. Important factors - including the availability of
funds, consummation of definitive documentation, 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.
SOURCE OrganiGram