Organigram Reports Postive Cash Flow and Update on Recent Events

MONCTON, NEW BRUNSWICK--(Marketwired - Jan. 24, 2017) - Organigram Holdings Inc. (TSX VENTURE:OGI) (OTCQB:OGRMF) (the "Company") is pleased to report the financial results for the quarter ending November 30, 2016. The Company continues to generate positive cash flow and significant year over year growth in sales of both dried flower and cannabis oils. The company is also providing an update regarding its recent voluntary recall of cannabis products, the current quantified impact to the financial statements, and some of the immediate and voluntary corrective actions and operating policies that Organigram has implemented.

Selected highlights from the quarter include the following:

Q1 - 2017	Operating Metric	Q1-2016
260,291	Grams Sold (Dried Bud)	142,790
$2,230,671	Net Sales	$1,029,376
65%	Gross Margin % (excluding FV adjustment) 1	55%
($755,547)	Net Profit	($201,211)
$272,839	Adjusted EBITDA2 (excluding FV adjustment)	($62,072)
$510,015	Cash Flow3	$25,844

1.	Gross Margin% (excluding FV adjustment) is defined as net sales less costs of goods sold and indirect production costs, divided by net sales.
2.	Adjusted EBITDA is a non-GAAP financial measure that does not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies. It is defined as net profit before interest, income tax, depreciation and amortization, and FV adjustment to bio-assets and inventory.
3.	Cash flow is calculated net profit before income tax, depreciation and amortization, share-based compensation, and FV adjustment to bio-logical assets and inventory.

The Company generated over $2.23 million in sales for the quarter on 260,291 grams of dried bud and 77,200 ml of cannabis oil sold. After adjusting for the change in fair value of inventory and biological assets, gross margin for the quarter was more than 65% and the Company generated adjusted EBITDA of $272,839 and cash flow of $510,015.