Organigram Acquires Soft Chew Manufacturer

Edibles & Infusions Corporation, a Cannabis Processor Backed by Decades of Confectionary Experience - Seite 2

“Organigram and EIC have enjoyed a collaborative partnership in working towards the closing of this transaction. Working with Organigram, we believe EIC can realize its full potential. Combining our complementary management expertise and business strengths will result in an integrated entity that is poised for further growth in Canada as well as globally in an expanding market for cannabinoid-infused products,” commented James Fletcher, President of EIC. “Our facility at EIC was designed to handle both smaller-batch artisanal manufacturing but, more importantly, large-scale nutraceutical-grade high-efficiency manufacturing with a view to gaining EU GMP certification as well. Indeed, the facility design and all of the equipment specifications were completed with that in mind.”

Strategic Rationale

“This acquisition, on the heels of the recently completed BAT transaction, provides strong strategic synergies for Organigram’s vision of developing innovative and novel products to serve the Canadian market and beyond,” said Paolo De Luca, Organigram’s Chief Strategic Officer. “Diversifying our manufacturing and R&D base gives us increased ability to fast-track our near-term commercial plans as well as expand our R&D efforts in addition to those already destined for the Centre of Excellence in connection with BAT.”

Some key highlights supporting the strategic rationale include:

Edibles category continues to grow. The edibles category currently represents approximately 4.4% of the Canadian recreational cannabis market of which soft chews (and related formats) collectively are approximately 75%. This is a rapidly growing segment of the overall Canadian market and the Company expects the Canadian market to gradually grow towards the 12%-15% and 85% edible and soft chew (and related formats) category share seen in the U.S. as new product offerings are introduced, and as regulatory changes unfold.

Unparalleled expertise in CPG confectionery production and distribution. Through the EIC Acquisition, Organigram adds the leadership of a company with approximately 100 years of active operations in confectionery production to Organigram’s expertise-driven team. The EIC management team also has experience in supplying confectionery products to over 20,000 locations throughout North America. EIC’s experience producing and distributing on this scale is unmatched in the industry and ensures product fulfillment capabilities as cannabis markets mature.