AgraFlora and Other Owners Agree to Sell Edibles Business for $35 Million to Organigram - Seite 2

1. $3.5 million to be received in common shares of OGI on first listing prior to December 31, 2021 in either the Ontario or Alberta recreational market of EIC or Organigram branded product (which was manufactured at the EIC facility);
2. $7.0 million to be received in common shares of OGI on the successful completion of $15 million in net revenue during the 12 months ended December 31, 2022;
3. $2.5 million to be received in common shares of OGI on the generation of $7 million in Adjusted EBITDA for the 12 months ended December 31, 2022.
   

The purchaser is an arm’s length party to AgraFlora. The EIC Transaction has been approved by AgraFlora’s Board of Directors. Milestone payments to be received in common shares of OGI shall be priced at the closing price on the Toronto Stock Exchange (“TSX”) on the day prior to settlement. The EIC Transaction has received approval from the TSX and has also received customary conditions and approvals from OGI’s senior lenders.

Advisors

Borden Ladner Gervais LLP, Chaitons LLP, MLT Aikins Law and Purdy Law acted as legal advisors to the vendors.

About AgraFlora Organics International Inc.

AgraFlora Organics International Inc. is a leading cannabis company building shareholder value through the development of revenue generating operating assets in the global cannabis industry. AgraFlora is focused primarily on the Canadian cannabis industry – the world’s most advanced and regulated legal cannabis market. Its flagship Canadian asset is Propagation Services Canada, a large-scale commercial greenhouse in Delta, BC focused on reshaping the Canadian flower market with high-potency, low-cost cannabis. In addition, AgraFlora’s wholly-owned subsidiary, Farmako GmbH, is focused on becoming Europe’s leading distributor of medical cannabis. Farmako currently has active distribution operations in Germany and expects to commence active operations in the United Kingdom in 2021. For more information about AgraFlora, please visit agraflora.ca and its profile page on SEDAR at www.sedar.com.

ON BEHALF OF THE BOARD OF DIRECTORS
Nick Kuzyk, Investor Relations
E: [e-mail]
T: [phone]

For French inquiries:
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Remy Scalabrini