Organigram Implements Protocols and to Take $2.26mm Charge

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Organigram Completes Investigation and Provides Update on Compensation Policy

MONCTON, NEW BRUNSWICK–(Marketwired – Feb. 27, 2017) – Organigram Holdings Inc. (TSX VENTURE:OGI)(OTCQB:OGRMF) (the “Company”) announces that it has completed the investigation related to a recent contamination issue which resulted in voluntary recalls of medical cannabis products produced by the Company.

Denis Arsenault, Organigram’s Chief Executive Officer, oversaw an extensive investigation that ultimately resulted in inconclusive findings with no hard evidence leading to the source of the contamination discovered. However, as a result of the contamination issue, the company has instituted a series of new protocols to prevent a reoccurrence of any issue of this nature.

We are determined to never have this happen again. The inquiry was thorough and was undertaken with the full cooperation and assistance of Health Canada and outside experts.

Denis Arsenault OrganiGramDenis Arsenault, CEO

Seven new company-wide initiatives have now been implemented. They are:

  1. Effective since January 1, 2017, Organigram tests every product lot for pesticides before they are made available for sale;
  2. All inputs from outside suppliers are now tested before they are used. Inputs include such things as seeds, growing medium, fertilizers, water, etc.;
  3. The company has updated its Integrated Pest Management (IPM) operating procedures to include periodic live plant sampling for pesticide screening;
  4. The company has developed a formal program for receiving, securing and testing critical inputs on a routine basis;
  5. A new, comprehensive screening process is now in place to pre-qualify suppliers before they are approved to do business with Organigram;
  6. The company has installed closed-circuit cameras in areas of its facility that were previously not required to be monitored;
  7. The company has developed and instituted a new education and training regime for all employees.

Arsenault also announced changes to the Company’s compensation plan for uninsured clients impacted by the recall. Organigram will now provide all clients without insurance coverage a full credit for their affected purchases. Details about this credit will be communicated directly to each client. The total value of these credits represents approximately $2.26M and will be reflected in the company’s Q2 results scheduled for publication in April 2017.

“Since the January recall, testing of harvested crops has been more comprehensive and effective — no trace of any contaminant has been detected,” said Arsenault. “As well, the company is undergoing a recertification process with Ecocert, the organization that validates our organic standards. Ecocert suspended — but did not remove — our certification during the investigation, and has been fully supportive of our efforts to bring operations back to full compliance with the organization’s standards,” Arsenault continues.

The well-being and satisfaction of former, existing, and future clients remains a top priority of the Company. “We are working extremely hard to regain the faith and trust of our clients,” he concluded.

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About Organigram Holdings Inc.

Organigram Holdings Inc. is a TSX Venture Exchange listed company whose wholly owned subsidiary, Organigram Inc., is a licensed producer of medical marijuana in Canada. Organigram is focused on producing the highest quality, condition specific medical marijuana for patients in Canada. Organigram’s facility is located in Moncton, New Brunswick and the Company is regulated by the Access to Cannabis for Medical Purposes Regulations (“ACMPR”).

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