Organigram to Bolster Auto-Flower and Rare Cannabinoid Portfolio with Partial Third Tranche Investment of US $1M into Phylos
Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI) has completed a partial third tranche investment of US $1M into Phylos Bioscience Inc., a U.S. cannabis genetics company. This strategic funding aims to expand Organigram's product portfolio, focusing on auto-flower and rare cannabinoid offerings. Key points include:
1. Phylos to deliver 42 unique auto-flower seed varietals by January 31, 2025.
2. Organigram gains access to high-potency CBG, CBC, and CBDV seed-based cultivars.
3. Exclusive rights in Canada until May 2028 to commercialize THCV from Phylos' cultivars.
4. Organigram has launched six THCV SKUs across four formats.
5. Total investment in Phylos now at US $7M, with an additional US $1M pending milestone completion.
Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI) ha completato un investimento parziale della terza tranche di 1 milione di dollari USA in Phylos Bioscience Inc., un'azienda americana specializzata nella genetica della cannabis. Questo finanziamento strategico mira ad ampliare il portafoglio prodotti di Organigram, concentrandosi su offerte di auto-fiorenti e cannabinoidi rari. I punti chiave includono:
1. Phylos consegnerà 42 varietà uniche di semi auto-fiorenti entro il 31 gennaio 2025.
2. Organigram avrà accesso a cultivar a base di semi ad alta potenza di CBG, CBC e CBDV.
3. Diritti esclusivi in Canada fino a maggio 2028 per commercializzare THCV dai cultivar di Phylos.
4. Organigram ha lanciato sei SKU di THCV in quattro formati.
5. L'investimento totale in Phylos è ora di 7 milioni di dollari USA, con un ulteriore milione di dollari USA in attesa di completamento di milestone.
Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI) ha completado una inversión parcial de la tercera ronda de 1 millón de dólares estadounidenses en Phylos Bioscience Inc., una empresa estadounidense de genética de cannabis. Este financiamiento estratégico tiene como objetivo expandir el portafolio de productos de Organigram, centrándose en variedades de floración automática y cannabinoides raros. Los puntos clave incluyen:
1. Phylos entregará 42 variedades únicas de semillas de floración automática para el 31 de enero de 2025.
2. Organigram obtiene acceso a cultivares a base de semillas de alta potencia de CBG, CBC y CBDV.
3. Derechos exclusivos en Canadá hasta mayo de 2028 para comercializar THCV de los cultivares de Phylos.
4. Organigram ha lanzado seis SKU de THCV en cuatro formatos.
5. La inversión total en Phylos ahora asciende a 7 millones de dólares estadounidenses, con un millón adicional pendiente de la finalización de hitos.
Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI)가 미국의 대마초 유전자 회사인 Phylos Bioscience Inc.에 100만 달러 규모의 3차 부분 투자를 완료했습니다. 이 전략적 자금 조달은 Organigram의 제품 포트폴리오를 확대하고 자동 개화 및 희귀 카나비노이드 제공에 집중하는 것을 목표로 합니다. 주요 사항은 다음과 같습니다:
1. Phylos는 2025년 1월 31일까지 42가지 독특한 자동 개화 씨앗 품종을 제공합니다.
2. Organigram은 CBG, CBC 및 CBDV 씨앗 기반 재배 품종에 접근합니다.
3. Phylos의 재배 품종에서 THCV를 상업화할 수 있는 캐나다 내 독점권이 2028년 5월까지 유효합니다.
4. Organigram은 네 가지 형식으로 THCV SKU 6개를 출시했습니다.
5. Phylos에 대한 총 투자액은 현재 700만 달러이며, 추가 100만 달러는 이정표 완료를 대기 중입니다.
Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI) a achevé un investissement partiel de 1 million de dollars américains dans Phylos Bioscience Inc., une entreprise américaine spécialisée dans la génétique du cannabis. Ce financement stratégique vise à élargir le portefeuille de produits d'Organigram, en mettant l'accent sur les offres de fleurs automatiques et de cannabinoïdes rares. Les points clés incluent :
1. Phylos livrera 42 variétés de graines automatiques uniques d'ici le 31 janvier 2025.
2. Organigram obtient l'accès à des cultivars à base de graines très puissants de CBG, CBC et CBDV.
3. Droits exclusifs au Canada jusqu'en mai 2028 pour commercialiser le THCV à partir des cultivars de Phylos.
4. Organigram a lancé six SKU de THCV dans quatre formats.
5. L'investissement total dans Phylos s'élève désormais à 7 millions de dollars américains, avec 1 million de dollars supplémentaires en attente de la réalisation des étapes.
Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI) hat eine teilweise dritte Tranche von 1 Millionen US-Dollar in Phylos Bioscience Inc., ein US-amerikanisches Unternehmen für Hanfgenetik, abgeschlossen. Diese strategische Finanzierung zielt darauf ab, das Produktportfolio von Organigram zu erweitern, mit Fokus auf selbstblühende und seltene Cannabinoid-Angebote. Die Hauptpunkte sind:
1. Phylos wird bis zum 31. Januar 2025 42 einzigartige selbstblühende Samenvarianten liefern.
2. Organigram erhält Zugang zu hochpotenten CBG-, CBC- und CBDV-Samen-Kultivaren.
3. Exklusive Rechte in Kanada bis Mai 2028 zur Kommerzialisierung von THCV aus Phylos' Kultivaren.
4. Organigram hat sechs THCV-SKUs in vier Formaten auf den Markt gebracht.
5. Die Gesamtinvestition in Phylos beträgt nun 7 Millionen US-Dollar, wobei weitere 1 Million US-Dollar pending ist, während die Meilensteinabschluss erfolgt.
- Strategic investment to expand product portfolio with auto-flower and rare cannabinoid offerings
- Exclusive rights to commercialize THCV from Phylos' cultivars in Canada until May 2028
- Launch of six THCV SKUs across four formats, including unique whole-flower derived products
- Access to high-potency CBG, CBC, and CBDV seed-based cultivars
- Potential for product differentiation and enhanced market position
- Additional US $1M investment contingent on milestone completion by March 31, 2026
- Convertible loan structure with potential for equity dilution upon conversion
Insights
The recent investment by Organigram into Phylos represents a strategic move to diversify its product portfolio, particularly targeting high-potency cannabinoids like CBG, CBC and CBDV. This diversification is important in the cannabis market, where differentiation and innovation can lead to substantial market share gains. The investment structure, via a convertible loan, also provides a financial cushion by allowing conversion to equity should cannabis become federally legal in the U.S., which mitigates some risk for Organigram.
From a financial standpoint, the ongoing milestones and tranche-based funding reduce the company's exposure to potential failures in reaching those milestones. The interest rate of U.S. Prime + 3.5% with a cap of 11% is relatively high but justified given the high-risk nature of the cannabis sector. Investors should consider the potential for dilution if the loan is converted to equity, but also the enhanced market position this could bring.
This investment highlights Organigram’s strategic intent to capture a larger share of the cannabis market by introducing products with unique cannabinoids which are not widely available. Given the current competitive landscape, having exclusive rights to cultivate and commercialize high THCV cultivars is a distinct advantage. The differentiation from competitors could drive consumer loyalty and higher sales margins.
Additionally, integrating auto-flower seeds into their portfolio addresses a specific segment of the market that values ease of cultivation and faster turnaround times. This could attract new consumer segments and boost Organigram's sales. However, the long-term success will depend on how well these products are received in the market and whether the expected consumer demand materializes.
The structured investment into Phylos via a convertible loan is a prudent approach to managing regulatory and legal risks inherent in the cannabis industry. The contingency of converting the loan to equity upon federal legalization or decriminalization of cannabis in the U.S. is a strategic hedge against current legal uncertainties. This not only provides a pathway to equity ownership but also aligns with potential future expansions into the U.S. market, which could be highly lucrative.
The expanded genetics license agreements offer a competitive edge, giving Organigram a unique position in the market. However, investors should be aware of the potential legal challenges and the evolving regulatory environment, which could impact the timeline and success of these strategic initiatives.
- The partial third tranche investment is expected to enable Organigram to expand its product portfolio, addressing consumer demand for unique and differentiated aromas and flavours.
- This strategic funding supports the growth and diversification of Organigram’s offerings with a view to enhancing its market position and appeal to consumers.
- Already a cultivation leader in high THCV cultivars, Organigram will now pilot higher potency rare cannabinoids such as CBG, CBC and CBDV.
As part of the expanded milestone, Phylos is required to deliver 21 unique auto-flower seed varietals for testing and phenotyping by Organigram no later than September 30, 2024, followed by a second cohort of 21 auto flower seed varietals to be delivered no later than January 31, 2025. In addition to the auto-flower seeds, Organigram received an expanded genetics licence from Phylos that, in addition to THCV, includes access to high potency CBG, CBC and CBDV seed based cultivars.
“We are pleased with the progress we’ve achieved to date and the benefits that have stemmed from this strategic investment. The continuous development and milestone achievements are instrumental in expanding and differentiating Organigram’s portfolio of seed-based cultivars, which are currently being scaled and have started to deliver tangible benefits to the organization,” says Borna Zlamalik, Senior Vice President, R&D and Innovation at Organigram.
Organigram’s THCV Portfolio
Organigram has exclusive rights in
Organigram was one of the first cannabis producers to launch THCV products in
Organigram’s THCV portfolio includes:
- SHRED Supersonic Citrus THCV pre-milled Flower
- SHRED X Guava Lime Go-Time Heavies Infused Pre- rolls
- SHRED’ems Guava Lime Go-Time 1:1 THCV:THC Gummies
- SHRED’ems Pink Lemonade Yuzu 2:1 THCV:THC Gummies
- Trailblazer Hustle n’ Haze THCV pre-rolls
- Monjour Cherry Citrus Sunshine 8:3:1 CBD/THCV/THC Gummies
Convertible Loan Details
Including the current partial third tranche advance, Organigram has now advanced an aggregate of US
The Convertible Loan accrues paid-in-kind interest (“PIK”) at a rate of
About Organigram
Organigram is a NASDAQ Global Select Market and TSX listed company whose primary wholly owned subsidiary, Organigram Inc., is a licensed producer of cannabis, cannabis-derived products and cannabis-infused edibles in
Organigram is focused on producing high-quality, cannabis for 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, Holy Mountain, Big Bag O’ Buds, SHRED, SHRED’ems, Monjour, Laurentian, Tremblant Cannabis and Trailblazer. Organigram operates cultivation and manufacturing facilities in
About Phylos Bioscience Inc.
Phylos is a cannabis genetics company focused on producing genetics for the highest quality varietals that can be grown at scale in a cost-effective way. Phylos owns and sells products that are legal under US and Canadian laws – seeds that the US Drug Enforcement Administration (“DEA”) has deemed are hemp and exempt from the CSA under US law – and intellectual property related to the seeds. Phylos supports commercial-scale cultivation with the industry’s first Production-Ready Seed™: premium, phenotypically stable, fully feminized F1 hybrid seeds that deliver exceptional flower quality, potency, vigor, and yield. Phylos also leverages its proprietary technologies and its cultivation, extraction, and formulation expertise to provide partners with unparalleled Rare Cannabinoid genetics for natural, safe and effective ingredients.
Forward-Looking Information
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 such as completion of the milestones by target dates established, regulatory and market conditions, the success of seed based production and the outcome of any commercialization efforts together with those factors and risks 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.sedarplus.ca) 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/20240723136952/en/
For Media enquiries:
Megan McCrae
Senior Vice President of Global Brands and Corporate Affairs
megan.mccrae@organigram.ca
For Investor Relations enquiries:
Max Schwartz
Director of Investor Relations
investors@organigram.ca
Source: Organigram Holdings Inc.
FAQ
What is the value of Organigram's recent investment in Phylos Bioscience?
How many auto-flower seed varietals will Phylos deliver to Organigram (OGI)?
What exclusive rights does Organigram (OGI) have regarding THCV cultivars?
How many THCV SKUs has Organigram (OGI) launched in the market?
What new cannabinoids will Organigram (OGI) have access to through this investment?
