Organigram Obtains Health Canada Licensing Approval

Organigram Holdings Inc. OGI OGI said Monday it has obtained approval from Health Canada for the licensing of 17 cultivation rooms under the Cannabis Regulations.

The licensing of these 17 cultivation rooms is part of the company’s Phase 4B expansion, and the licenses are valid until March 27, 2020.

With the newly obtained licenses, the company’s Moncton facility will have a target production capacity of 76,000kg annually.

“Once again, we are pleased to receive licensing approval consistent with our expectations and the streamlined process we have experienced to date. Our Phase 4 facility expansion remains on schedule to meet growing demand and further contribute to efficiencies of scale,” Greg Engel, Organigram CEO said in a statement.

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The company will start transferring cannabis plans to the new rooms immediately, and it expects harvesting product from these rooms by the end of November. A final product, in the shape of a dried flower, from these additional rooms is planned to be ready for sale during the company’s fiscal quarter ending February 29, 2020.

The company plans to submit the licensing amendment for the remaining 16 cultivation rooms later in September, as part of the same Phase 4B expansion.

The stock closed Friday’s session at $4.94 per share and traded higher by 3.4% Monday morning.

 Click here for more information about the upcoming Benzinga Cannabis Capital Conference Oct. 22-23 in Chicago.