Organigram Provides Corporate Update - Seite 3

Liquidity and Balance Sheet

The Company believes it has sufficient liquidity and capital to fund operations and complete the expansion of its Moncton Campus.

As at the end of Q4 2019, the Company expects to report about $47.9 million in cash and short-term investments and about $49.6 million in current and long-term debt, which primarily represents the carrying value of its term loan. Subsequent to Q4 2019, an additional $15.0 million was drawn on its term loan leaving about $50.0 million in available capacity of the total term loan of $115.0 million. The Company also has a revolver of up to $25.0 million available to be drawn against specified receivables.

On November 4, 2019, the Company filed a preliminary base-shelf prospectus for an amount up to $175.0 million through the issuance of common shares, preferred shares, debt securities, subscription receipts, warrants or units. In order to take advantage of raising funds by way of the base-shelf prospectus, the Company would be required to file a final base-shelf prospectus and one or more prospectus supplements. The purpose of filing the base-shelf prospectus is to shorten the timeline to raise funds for growth opportunities and working capital.

Outlook

At this point in the first quarter of fiscal 2020 (ending November 30, 2019) (“Q1 2020”), the Company has shipped more sales compared to the same point in Q4 2019. The Company believes it is neither possible nor prudent to provide any further guidance given the dynamic forces and uncertainty in the industry today.

Beyond fiscal Q1 2020, the Company remains on track to launch vape pens in mid-December followed by cannabis-infused chocolate products in calendar Q1 2020 and now expects its shelf stable, water-compatible, flavorless nano-emulsion powdered beverage product in calendar Q2 2020 based on expected licensing for the production area and equipment delivery and commissioning schedules. Organigram submitted new product notifications to Health Canada for a vape pen portfolio and cannabis infused chocolates last month.

The Company also received its research and development license from Health Canada last month to conduct further in-house research, including taste testing, to strive for the optimal consumer experience.

Important Information Regarding Financial Statement Figures Cited

The preliminary estimated financial results and other data for the three months and fiscal year ended August 31, 2019 set forth above are unaudited and subject to the completion of the Company's financial closing procedures. This data has been prepared by, and is the responsibility of, the Company's management. Organigram's independent registered public accounting firm, Deloitte LLP, is in the process of performing year-end audit procedures with respect to the accompanying preliminary financial results and other data, and accordingly does not express an opinion or any other form of assurance with respect thereto. The Company currently expects that its final results of operations and other data will be consistent with the estimates set forth above, but such estimates are preliminary and Organigram's actual results of operations and other data could differ materially from these estimates due to the completion of its fiscal year-end audit procedures, final adjustments, and other developments that may arise between now and the time such annual audited consolidated financial statements for the year ended August 31, 2019 are released.