Organigram Reports First Quarter Fiscal 2022 Results

$30.4 million net revenue represents a record for the Company as it solidifies #4 market share position nationally among Canadian LPs


  • 23% growth in gross revenue to $44.3 million from Q4 Fiscal 2021 and 75% from the same prior-year period
  • Achieved highest quarterly net revenue in the history of the Company at 22% growth to $30.4 million, from $24.9 million in Q4 Fiscal 2021 and 57% growth from $19.3 million in Q1 2021
  • Maintained market share position as #4 Canadian LP with 7.5% market share, up from 4.4% share in Q1 Fiscal 20211
  • SHRED popularity continues with Tropic Thunder and Funk Master achieving #1 and #2 positions respectively in November as the best-selling flower products in Canada1
  • SHRED maintains most-searched brand status on (13 out of last 14 months)
  • Recently launched Edison JOLTS, an ingestible extract lozenge, maintains its top selling position within its category1
  • Launched 13 new stock-keeping units (SKUs) for a total of 49 SKUs available in the market, covering key categories
  • Introduced Monjour, a new wellness brand offering high quality, high potency, CBD-forward products. Monjour’s first offerings are fruit-flavoured soft chews available in both vegan-friendly and sugar-free formats
  • Resumed shipping to Israel through Canndoc Ltd., shipping over 1,400 kilograms of dry flower in the quarter
  • Subsequent to quarter-end, acquired Laurentian Organic Inc., a private Quebec-based producer of hash and craft cannabis, an immediately accretive transaction providing the Company with a broadened, premium-focused product portfolio and footprint in the important Quebec market
  • Also subsequent to quarter-end, the Company increased its investment in Hyasynth Biologicals Inc., a pioneer in cannabinoid science, in which the Company has the option to purchase Hyasynth’s proprietary biosynthesis-generated cannabinoids at a discount to the wholesale market price for a period of ten years from the date of Hyasynth’s commencement of commercial production

MONCTON, New Brunswick, January 11, 2022–(BUSINESS WIRE)–Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI), the parent company of Organigram Inc. (together, the “Company” or “Organigram”), a leading licensed producer of cannabis, announced its results for the first quarter ended November 30, 2021 (“Q1 Fiscal 2022”).

Our record-breaking results in the first quarter of Fiscal 2022 are a testament to our successful strategy to create innovative, high-quality products that align with the evolving preferences of the various segments of cannabis consumers.

Beena Goldenberg

Our positive outlook for 2022 is further bolstered by the addition of Laurentian’s premium products to our portfolio, with an increased presence in Quebec and the resumption of international sales, which will continue through the year.

“We are also pleased with our continued progress at improving economies of scale in our operations, thus reducing operating costs and driving significant improvements in adjusted gross margin and adjusted EBITDA,” added Goldenberg. “While we previously projected to achieve positive adjusted EBITDA in Q4, with the purchase of Laurentian that will be accelerated to Q3 Fiscal 2022.”

1 Adjusted gross margin, adjusted gross margin % and adjusted EBITDA are non-IFRS financial measures not defined by and do not have any standardized meaning under IFRS; please refer to the Company’s Q1 Fiscal 2022 MD&A for definitions and a reconciliation to IFRS.

2 Excluding non-cash share-based compensation.

nm – not meaningful

“Our strong balance sheet and cash position will ensure that we are well-positioned to execute on our key growth initiatives for fiscal 2022. These include the expansion of our growing facility in Moncton to an annual capacity of 75,000 kilograms of flower from its current capacity of 55,000 kilograms, and the build out of our Centre of Excellence in collaboration with BAT,” stated Derrick West, Chief Financial Officer. “These initiatives will further enhance our ability to drive innovation and solidify our position as a leading Canadian LP.”

Key Financial Results for the First Quarter Fiscal 2022

  • Net revenue:
    • Compared to the prior year, net revenue increased 57% to $30.4 million, from $19.3 million in Q1 Fiscal 2021. The increase was primarily due to an increase in adult-use recreational revenue and international revenue, partly offset by lower average selling price (“ASP”) due to product mix and a decrease in medical revenue.
  • Cost of sales:
    • Q1 Fiscal 2022 cost of sales increased by 20% to $27.9 million, from $23.2 million in Q1 Fiscal 2021, primarily as a result of the increase in sales volume in the adult-use recreational market.
  • Gross margin before fair value changes to biological assets, inventories sold, and other charges:
    • Q1 Fiscal 2022 margin improved to $2.5 million from negative $3.8 million in Q1 Fiscal 2021 largely due to higher net revenue as described above.
  • Gross margin:
    • Q1 Fiscal 2022 gross margin increased to a positive result from negative Q1 Fiscal 2021 gross margin largely due to higher Q1 Fiscal 2022 gross margin before fair value changes to biological assets and inventories sold as described above, as well as net non-cash negative fair value changes to biological assets and inventories sold in Q1 Fiscal 2021.
  • Adjusted gross margin2:
    • Q1 Fiscal 2022 adjusted gross margin was $5.5 million, or 18% of net revenue, compared to $1.9 million, or 10%, in Q1 Fiscal 2021. This was largely due to reduced cultivation costs partially offset by a shift in the sales mix to value-priced products and brands with a lower ASP.
  • Selling, general & administrative (SG&A) expenses:
    • Q1 Fiscal 2022 SG&A expenses increased by 21% to $12.6 million from $10.5 million in Q1 Fiscal 2021, primarily due to an increase in general office expenses in connection the Company’s share of costs associated with the establishment of the Centre of Excellence as well as increased advertising and promotion costs, and marketing initiatives related to the launch of the Company’s gummy brands and increased focus on the Edison brand.
  • Adjusted EBITDA3:
    • Q1 Fiscal 2022 negative adjusted EBITDA improved to $1.9 million compared to $5.7 million in Q1 Fiscal 2021, primarily due to the increase in adjusted gross margins, partially offset by the increase in SG&A expenses.
  • Net loss:
    • Q1 Fiscal 2022 net loss was $1.3 million, compared to a net loss of $34.3 million in Q1 Fiscal 2021, primarily due to the higher gross margin in the current quarter along with fair value adjustments on biological assets and inventories sold.
  • Net cash (used in) provided by operating activities:
    • Q1 Fiscal 2022 net cash used in operating activities was $9.3 million: this was primarily driven by the increase in accounts receivable. In Q1 Fiscal 2021, cash provided by operating activities was $0.3 million, which was primarily driven by the realization of accounts receivable and inventories.

Canadian Recreational Market

Monjour CBD-forward wellness brand

  • In November 2021, Monjour, a new CBD-forward wellness brand dedicated to pursuing a better daily wellness regime, was launched. Monjour’s first offerings include both vegan-friendly as well as sugar-free soft chews, both in assorted flavours.

Laurentian Organic Inc. (“Laurentian”)

  • In December, the Company acquired Laurentian, a Quebec-based licensed producer specializing in high-quality, artisanal craft cannabis and premium Afghan hash. The acquisition accelerates and strengthens Organigram’s presence in the Quebec market and expands the Company’s product portfolio. The Company will invest at least $7 million in Laurentian to drive cultivation growth, expand processing and storage space and invest in automation. Organigram will use its direct sales team and national distribution to bring Laurentian’s products to additional Canadian provinces.

Research and Product Development

Product Development Collaboration (“PDC”) and Centre of Excellence (“CoE”)

  • In early Q4 Fiscal 2021, the Company announced the successful launch of the Product Development Collaboration, outlined in the agreement with BAT, which was established to focus on research and product development activities for the next generation of cannabis products, as well as cannabinoid fundamental science, with an initial focus on CBD. The CoE is located at the Moncton Campus, which holds the Health Canada licenses required to conduct PDC R&D activities with cannabis products.
    • The CoE includes state of the art shared R&D, Good Production Practices (“GPP”) food preparation, sensory testing and bio-lab research.
    • In Q1 Fiscal 2022, the Company completed the expansion of its Quality Assurance and Control Laboratory to meet the needs of the CoE and started construction on BioLab as well as the GPP Food and Edibles Facility. The first phase of recruitment has been completed. The remaining core construction projects are anticipated to be completed by Q2 Fiscal 2022.

Plant Science, Breeding and Genomics R&D in Moncton

  • Organigram’s cultivation plans focus on cultivating a pipeline of unique and sought-after genetics, maximizing flower quality in terms of THC yield, terpene profiles and general plant health to meet evolving consumer demand. The Company plans to aggressively pursue expanding its in-house breeding program, dedicating significant R&D space for breeding, phenotyping, screening, and various plant science trials while ensuring no competing priorities with commercial cultivation capacity.
  • As part of its ongoing genetic exploration program, the Company is benefiting from BAT’s tremendous depth of expertise in plant science gained from PDC activities.
  • Organigram believes its strategic and creative product development process is a key differentiator for the Edison portfolio and the Company overall and looks forward to introducing more new genetics over the next few quarters.

Strategic Investment in Hyasynth Biologicals Inc. (“Hyasynth”)

  • Following the most recent investment of $2.5 million in December 2021, Organigram has invested a total of $10 million in Hyasynth through the participation in three tranches of convertible debentures. The Company has appointed two nominees on Hyasynth’s Board of Directors and has the option to purchase Hyasynth’s cannabinoids, at a discount to the wholesale market price for a period of ten years from the date of Hyasynth’s commencement of commercial production.
  • Hyasynth is a pioneer in the field of cannabinoid science and biosynthesis, a process that results in products and final ingredients that are pesticide-free and natural. Hyasynth’s biosynthesis process uses patent-pending yeast strains and enzymes to produce pure cannabinoids (not synthetic) without relying on cannabis plants, making the cannabinoid input more cost effective than when derived from cannabis plants.
  • The Company expects that its relationship with Hyasynth will position it in future to introduce further innovative products in the medical, wellness and recreation sectors that contain major cannabinoids such as THC or CBD, as well as rare cannabinoids which are believed to the next frontier of cannabis research and product development.


Net revenue

  • Organigram currently expects a solid Q2 Fiscal 2022 revenue which will be significantly higher than Q2 Fiscal 2021, largely due to stronger forecasted market growth and the increasing number of retail stores; the Company is better able to fulfill the demand for its revitalized product portfolio with its increased production, and revenue contributions from its newly acquired Laurentian facility.
  • Net revenue growth is expected from the Company’s products as evidenced by Organigram’s growing national adult-use recreational retail market share (“market share”) from 4.4% in Q1 of Fiscal 2021 to 7.5% in Q1 of Fiscal 2022.
  • In addition, the resumption of shipments to Canndoc in Israel is expected to generate higher sequential revenue in Fiscal 2022 as compared to Fiscal 2021. The Company believes it is better equipped to fulfill demand in Fiscal 2022 with larger harvests expected as compared to Fiscal 2021. Revenues in Fiscal 2022 to date including a shipment to Canndoc that was in excess of $3.0 million, and purchase orders received from customers, support the Company’s expectation of revenue growth from Fiscal 2021 to Fiscal 2022.
  • Organigram also expects to be positioned to generate more revenue growth from the production of soft chews and other edible products with the specialized equipment in the Winnipeg Facility under the direction of EIC leadership, who bring significant expertise in confectionery manufacturing. In Fiscal 2022, line extensions will be introduced to the Company’s popular SHRED’EMS gummy and Edison Jolt lozenge SKUs.
  • The Company also expects to realize additional revenue through the recent acquisition of Laurentian. Over the last two months of calendar 2021, Laurentian has been averaging an annual net revenue run rate of $17 million and an annual EBITDA run rate of $6 million. The Company will make growth capital expenditures at Laurentian which have the potential to further increase EBITDA generation. Laurentian’s hash and artisanal craft cannabis products complement the Company’s product line and will benefit from the Company’s direct sales team and national distribution.

Adjusted gross margins

  • The Company expects to see a sequential improvement in adjusted gross margins in Q2 Fiscal 2022 and has put in place measures that it expects will further improve margins over time.
  • The overall level of Q2 Fiscal 2022 adjusted gross margins versus Q1 Fiscal 2022 will also be dependent on other factors, including, but not limited to, product category and brand sales mix.
  • Organigram has identified the following opportunities which it believes have the potential to further improve adjusted gross margins over time:
    • Economies of scale and efficiencies gained as it continues to scale up cultivation, including the grow rooms that will be available after completing the construction of Phase 4C of the Moncton Campus;
    • Changes to its growing and harvesting methodologies and design improvements and environmental enhancements should improve operating conditions of the Moncton Campus, resulting in higher-quality flower and improved yields;
    • Continued investment in automation which will drive cost efficiencies and reduce dependence on manual labor;
    • International sales, which have historically attracted higher margins and are expected to represent a greater proportion of the Company’s revenue following the resumption of shipments to Canndoc Ltd.;
    • Continued investment in the Edison brand, including new strains and form factors such as pre-rolls and vape cartridges that generally attract higher margins;
    • Price increases to SHRED’s pre-milled flower SKUs;
    • The recent launches of new products such as Edison Jolts (ingestible extracts), SHRED’ems and most recently Monjour, represent new potential avenues for growth with expected attractive long-term margin profiles for the Company; and
    • Margin contribution from the addition of the Laurentian portfolio of products.

SG&A Expenses5

  • Q2 Fiscal 2022 SG&A is expected to increase slightly from Q1 Fiscal 2022, due to the addition of Laurentian. Beginning in Q1 Fiscal 2022, research and development activities have been shown separately from SG&A expenses.


  • Shipments to Canndoc Ltd., which resumed in Q1 Fiscal 2022, are expected to continue during Fiscal 2022.
  • Recent political changes and cannabis election ballot initiatives for medical and recreational use in the United States suggest that the potential movements to U.S. federal legalization of cannabis (THC) have increased momentum, but the timing and outcome remain difficult to predict. Organigram continues to monitor and develop a potential U.S. THC strategy and evaluate CBD entry opportunities in the United States.

Liquidity and Capital Resources

  • On November 30, 2021, the Company had unrestricted cash and short-term investments balance of $168 million compared to $184 million at August 31, 2021.
  • Organigram believes its capital position is healthy and that there is sufficient liquidity available for the near to medium term.

Capital Structure

Outstanding basic and fully diluted share count as at January 10, 2022 is as follows:

First Quarter Fiscal 2022 Conference Call

The Company will host a conference call to discuss its results with details as follows:
Date: January 11, 2022
Time: 8:00am Eastern Time
To register for the conference call, please use this link:

To ensure you are connected for the full call, we suggest registering a day in advance or at minimum 10 minutes before the start of the call. After registering, a confirmation will be sent through email, including dial in details and unique conference call codes for entry. Registration is open through the live call.

To access the webcast:

A replay of the webcast will be available within 24 hours after the conclusion of the call at and will be archived for a period of 90 days following the call.

Non-IFRS Financial Measures

This news release refers to certain financial performance measures (including adjusted gross margin and adjusted EBITDA) that are not defined by and do not have a standardized meaning under International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board. Non-IFRS financial measures are used by management to assess the financial and operational performance of the Company. The Company believes that these non-IFRS financial measures, in addition to conventional measures prepared in accordance with IFRS, enable investors to evaluate the Company’s operating results, underlying performance and prospects in a similar manner to the Company’s management. As there are no standardized methods of calculating these non-IFRS measures, the Company’s approaches may differ from those used by others, and accordingly, the use of these measures may not be directly comparable. Accordingly, these non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Please refer to the Company’s Q1 Fiscal 2022 MD&A for definitions and, in the case of adjusted EBITDA, a reconciliation to IFRS amounts.

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 and candy in Canada.

Organigram is focused on producing high-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, Indi, Bag o’ Buds, SHRED and Trailblazer. Organigram operates facilities in Moncton, New Brunswick and Lac-Supérieur, Quebec, with a dedicated manufacturing facility in Winnipeg, Manitoba. The Company is regulated by the Cannabis Act and the Cannabis Regulations (Canada).

1 HiFyre, January 3, 2022

2 Adjusted gross margin is a non-IFRS financial measure not defined by and does not have any standardized meaning under IFRS; please refer to the Company’s Q1 2022 MD&A for definitions and a reconciliation to IFRS.

3 Adjusted EBITDA is a non-IFRS financial measure not defined by and does not have any standardized meaning under IFRS; please refer to the Company’s Q1 2022 MD&A for definitions and a reconciliation to IFRS.

4 The disclosure in this section are subject to the risk factors referenced in the “Risk Factors” section of the Company’s Q1 Fiscal 2022 MD&A, which is available in the Company’s profile at Without limiting the generality of the foregoing, the expectations concerning revenue, adjusted gross margins and SG&A are based on the following general assumptions: consistency of revenue experience with indications of first quarter performance to date, consistency of ordering and return patterns or other factors with prior periods and no material change in legal regulation, market factors or general economic conditions. The Company disclaims any obligation to update any of the forward-looking information except as required by applicable law. See cautionary statement in the “Introduction” section at the beginning of the Company’s Q1 Fiscal 2022 MD&A.

5 The forward-looking estimate of costs is based on a number of material factors and assumptions. Please see the cautionary statement in this press release and in the Company’s Q1 Fiscal 2022 MD&A.

Original press release

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