Organigram Provides Edison JOLTS Product Update

Rhea-AI Summary

Organigram Holdings Inc. (NASDAQ: OGI) has received notification from Health Canada regarding its Jolts lozenge products, which were improperly classified. Initially launched in August 2021, these products are deemed cannabis extracts by the company. However, Health Canada has classified them as edibles, leading to a pause in production pending resolution. The company can still sell existing inventory until May 31, 2023. Organigram is consulting legal advisors to address the classification issue.

Positive

• The company can continue to sell and distribute existing inventory until May 31, 2023.
• Organigram believes its Jolts lozenge products comply with regulations and are properly classified as extracts.

Negative

• Production of the Jolts lozenge products has been paused, affecting current sales.
• Potential legal and regulatory challenges may arise from Health Canada's classification.

TORONTO--(BUSINESS WIRE)-- Organigram Holdings Inc. (“Organigram” or the “Company”) (TSX: OGI; NASDAQ: OGI), announced that it has received notification from Health Canada that Health Canada has determined that certain Jolts lozenge products in their 100 mg THC per package format (the “Products”) have been improperly classified as an “extract” rather than an “edible” under the Cannabis Regulations. The Company launched the Products in August 2021 following significant research, development and regulatory work. The Company remains of the view that the patent pending Products are properly classified as cannabis extracts and compliant with the Cannabis Regulations, and is assessing its options with its legal advisors. At present, the Company has paused production of the Products in the current packaging format, pending resolution of the matter. According to Health Canada’s notification, the Company can continue to sell and distribute inventory of the Products until May 31, 2023.

About Organigram Holdings Inc.

Organigram Holdings Inc. is a NASDAQ Global Select Market and TSX listed company whose wholly-owned subsidiaries include: Organigram Inc. and Laurentian Organic Inc., licensed producers of cannabis and cannabis-derived products in Canada, and The Edibles and Infusions Corporation, a licensed manufacturer of cannabis-infused soft chews in Canada.

Organigram is focused on producing high-quality, cannabis for patients and adult recreational consumers, as well as developing international business partnerships to extend the Company’s global footprint. Organigram has also developed and acquired a portfolio of legal adult-use recreational cannabis brands, including Edison, Big Bag O’ Buds, SHRED, SHRED’ems, Monjour, Laurentian, Tremblant Cannabis and Trailblazer. Organigram operates facilities in Moncton, New Brunswick and Lac-Supérieur, Quebec, with a dedicated edibles manufacturing facility in Winnipeg, Manitoba. The Company is regulated by the Cannabis Act and the Cannabis Regulations (Canada).

This news release contains forward-looking information. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects”, “estimates”, “intends”, “anticipates”, “believes” or variations of such words and phrases or state that certain actions, events, or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results, events, performance or achievements of Organigram to differ materially from current expectations or future results, performance or achievements expressed or implied by the forward-looking information contained in this news release. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information include factors and risks as disclosed in the Company’s most recent annual information form, management’s discussion and analysis and other Company documents filed from time to time on SEDAR (see www.sedar.com) and filed or furnished to the Securities and Exchange Commission on EDGAR (see www.sec.gov). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur in the disclosed time frames or at all. The forward-looking information included in this news release are made as of the date of this news release and the Company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230313005285/en/

For media inquiries:

Helen Martin

Chief Legal Officer

helen.martin@organigram.ca

For investor inquiries:

investors@organigram.ca

Source: Organigram Holdings Inc.

FAQ

What did Organigram announce regarding its Jolts lozenge products?

Organigram announced that Health Canada improperly classified its Jolts lozenge products, leading to a pause in production while the company consults legal advisors.

When were the Jolts lozenge products launched?

The Jolts lozenge products were launched in August 2021.

What is the current status of the Jolts lozenge products?

Production is paused pending resolution of the classification issue, but inventory can be sold until May 31, 2023.

What classification issue is Organigram facing with Health Canada?

Health Canada has classified the Jolts lozenge products as edibles rather than extracts, which Organigram disputes.