Potential investment in alpha-cannabis® Pharma
GmbH represents strategic opportunity to deliver product to the
German market
MONCTON, NB, May 8, 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 it has entered a
non-binding term sheet to acquire up to 25 per cent of
alpha-cannabis Pharma GmbH ("Alpha-Cannabis Germany" or
"ACG") located in Stadthagen, Germany.
"We are proud to have developed a world-class indoor facility
producing Canada's premier medical
cannabis which is now ready to help support the global cannabis
market," said Greg Engel, CEO,
Organigram. "As we expand into international market development and
technology acquisition, we are pleased to announce our proposed
investment in Alpha-Cannabis Germany, the first of what we
anticipate will be several international business development
announcements. We have taken the time to curate several
opportunities which, like ACG, we believe offer excellent strategic
fit and add value to our core operations."
According to the non-binding term sheet, Organigram will invest
up to €1,625,000 in cash and €875,000 worth of Organigram common
shares (based on the achievement of milestones) for 25 per cent of
the aggregate issued and outstanding shares of Alpha-Cannabis
Germany on a fully-diluted basis. Once the agreement is
final, Organigram will provide ACG with dried cannabis flower as
well as sweet leaf for conversion into extracts for the burgeoning
German medical cannabis market. Further, the parties also
anticipate entering into an agreement whereby Organigram will have
an option to purchase pure synthetic CBD isolate from
Alpha-Cannabis Germany. The parties anticipate jointly
submitting for future licenses available to supply medical cannabis
in the German market.
"We have been looking for a strategic partnership with an
experienced group that is committed to world-class product quality
and safety" said Alexander Klomsdorff, Alpha-Cannabis Germany CEO.
"Product excellence is a prerequisite for serving the German market
with medical cannabis and cannabis-based drugs. Organigram's total
quality management and monitoring system gives us confidence in
them as one of Canada's most
reliable producers performing far beyond regulatory
requirements."
The closing is subject to customary conditions for an investment
of this nature, including satisfactory due diligence, TSXV
regulatory approval and all other required regulatory approvals and
consents.
About alpha-cannabis® Pharma GmbH (Alpha-Cannabis
Germany)
Established in 2016, Alpha-Cannabis Germany is strategically
positioned to serve the German medical cannabis market which is
quickly becoming one of the largest markets for medical cannabis in
the world. Additionally, the German market is positioned as a
potential gateway to supplying other European markets.
With team of highly experienced and reputable specialists from
the pharmaceutical industry with scientific and business
backgrounds, ACG is focused on the development, production and
marketing of Cannabis-based APIs (Active Pharmaceutical
Ingredients) and pharmaceuticals. ACG's activities cover the
spectrum of cannabinoids. The company enjoys a strong network
of professional partners throughout Germany and its recently announced launch of a
CBD kit will be available in over 20,000 pharmacies throughout
Germany, Austria and Switzerland.
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, closing of the transaction referenced in this
news release, 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.
For more information on Organigram please
visit: www.Organigram.ca
SOURCE OrganiGram