OrganiGram to Bring Colorado Cannabis Extraction Expertise to Canada through Partnership

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OrganiOil

Canadian licensed cannabis producer OrganiGram (TSXV: OGI) (OTC: OGRMF) obtained its license from Health Canada to produce oils in February and announced its license to sell oils on June 22nd.  In its recent capital raise of $23mm, it had indicated its intent to allocate approximately 20% of the net proceeds towards developing production, distribution and sales capacity of cannabis oil extracts over the next 12 months. This morning, the company announced that it is partnering with  TGS International, an affiliate of the holding company of Colorado-based The Green Solution, to accelerate its strategy.

TGS has distinguished itself as a leader in the Colorado medical and adult-use cannabis markets in terms of their sales, product quality, and reliability. Their award winning proprietary brands, The Green Solution™ and NectarBee™ have generated well over US$100MM in cumulative sales through their affiliated Colorado operations, including over US$43MM in 2015 alone.

denis arsenaultDenis Arsenault, OrganiGram CEO

OrganiGram has now raised the necessary capital, secured the required real estate, and has selected the ideal strategic partner to position OrganiGram as a major force in the emerging oils and edibles market.

The Green Solution, which employs more than 500, operates a dozen stores, two of which are limited to medical sales, in the Denver area and will open its 13th store in Trinidad later this month. It also has licensing deals in Florida and Illinois, and this partnership marks its first outside the U.S. CEO Eric Speidell, a former marine who founded the business in 2010, credits the company’s focus on standardization, quality and reliability of its processes and products for its success.

The deal terms weren’t fully disclosed, but OrganiGram will issue $600K in stock to TGS in the future upon the achievement of milestones as well as stock options and will pay a royalty to the company to license over 225 exclusive products.

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Exclusive article by Alan Brochstein, CFA
Alan Brochstein, CFA
Based in Houston, Alan leverages his experience as founder of online communities 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | Email

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