Research to focus on increasing CBD
production in hemp and cannabis,
while reducing transformation costs
MONCTON, NB, Jan. 21, 2019 /CNW/ - Organigram Holdings
Inc. (TSX VENTURE: OGI) (OTCQX: OGRMF), the parent company of
Organigram Inc. (the "Company" or "Organigram"), a leading licensed
producer of cannabis, is pleased to announce the Company has
entered into an agreement with 1812 Hemp, a New Brunswick based industrial hemp research
company to secure supply and support research and development on
the genetic improvement of hemp through traditional plant breeding
methods. 1812 Hemp is focused on further developing a line of
Canadian cultivars (specific varieties of plants cultivated to
enhance desirable qualities) of high cannabidiol (CBD) yielding
hemp for the Canadian climate.
Under the terms of the agreement, Organigram will have access to
a secure supply of hemp flower which contains significant levels of
cannabidiol (CBD cultivars ranging from 4% to 8%). CBD
is a naturally occurring active ingredient in hemp and cannabis
that is currently being studied for various therapeutic uses.
"Maximizing the CBD yield of hemp and cannabis means being able
to meet increasing consumer demand for CBD while reducing overall
production costs," explains Greg
Engel, CEO Organigram. "We are proud to work with other
industry-leading companies and researchers to continue to explore
the potential of hemp and cannabis plants and the efficiency with
which we can deliver CBD to our customers."
The recent legalization of cannabis in Canada has meant an increased need for
agriculture technologies and plant breeding research to support
both the indoor and outdoor growing of cannabis and industrial
hemp. 1812 Hemp is excited to leverage the considerable research
capacity and the substantial experience in variety and cultivar
crop development in New Brunswick
as it launches its industrial hemp breeding program for the
development of new and improved cultivars to support the national
and global demand for high value hemp genetics.
"We see the future CBD market in Canada and beyond to be an incredible
opportunity" explains Engel. "CBD infused products will only
grow in both medical and adult recreational channels, and we are
focused on establishing the right relationships and processes now
to fully take advantage of that opportunity".
Access to Hemp
As part of the deal Organigram has access to approximately 6,000
kg of dried hemp flower harvested in the fall of 2018 which it
intends to purchase and begin to send for extraction within the
first calendar quarter of 2019.
In addition, Organigram has a right-of-first refusal on future
procurement of hemp from 1812 Hemp which is expected to increase
significantly in 2019 and beyond.
About 1812 Hemp
1812 Hemp is a New Brunswick
based industrial hemp research company focused on furthering the
development of existing, and new hemp cultivars for various
applications including natural products, fibres and medicinals.
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 cannabis and cannabis-derived products in
Canada.
Organigram is focused on producing the highest-quality,
indoor-grown cannabis for patients and adult recreational consumers
in Canada, as well as developing
international business partnerships to extend the company's global
footprint. Organigram has also developed a portfolio of legal adult
use recreational cannabis brands including The Edison Cannabis
Company, Ankr Organics, Trailer Park Buds and Trailblazer.
Organigram's primary facility is located in Moncton, New Brunswick and the Company is
regulated by the Cannabis Act and the Cannabis
Regulations (Canada).
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 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