CAN (NB): Health Canada approval to expand production capacity to target 76,000 kg per year

Organigram Holdings, effective Sept. 6, 2019, has received Health Canada’s approval for the licensing of 17 additional cultivation rooms under the Cannabis Regulations.

"The new cultivation rooms represent approximately 15,000 kg/year of increased target production capacity," the team with the company explains. "These are the first 17 rooms licensed within the company’s Phase 4B expansion and now brings the company’s Moncton facility to annualized licensed capacity to a target of 76,000 kg."

The licenses are valid until March 27, 2020 and subject to terms and conditions.

“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,” explains Greg Engel, CEO of Organigram.

"As a result of this approval, cannabis plants will be moved into these new rooms on a rolling basis, commencing immediately. We anticipate harvesting product from these new rooms by the end of November, assuming normal cultivation timelines. After drying and other post-harvest processing (including packaging), dried flower from these additional rooms is expected to be available for sale to patients and customers in the company’s fiscal quarter ending Feb. 29, 2020."

According to them, substantial construction of the entire Phase 4B stage remains on schedule for completion in September 2019 and the company also anticipates submitting the licensing amendment for the remaining 16 Phase 4B cultivation rooms later this month.

The perimeter of Phase 5 of the company’s expansion, which will include an edibles and derivative product facility and more extraction capacity, is also planned for this Health Canada licensing submission.

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