Insights & Opportunities - TSX Venture (OGI) OTCQB Venture Marketplace (OGRMF) - OrganiGram

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Insights & Opportunities - TSX Venture (OGI) OTCQB Venture Marketplace (OGRMF) - OrganiGram
Insights & Opportunities
TSX Venture (OGI)
OTCQB Venture Marketplace (OGRMF)
Insights & Opportunities - TSX Venture (OGI) OTCQB Venture Marketplace (OGRMF) - OrganiGram
Disclaimer & Cautionary Statements
    This document is current as of September 11, 2018. The information                  the forward-looking statements, including, among others, OGI’s crop yields,
    contained in this presentation is provided by Organigram (“OGI”) for                product liability, government regulation, OGI’s expansion plans, as well as
    informational purposes only and does not constitute an offer to issue or            those risk factors identified in OGI’s Q3-2018 MD&A and other disclosure
    arrange to issue, or the solicitation of an offer to issue, securities of OGI or    documents available at www.sedar.com under OGI’s name. OGI undertakes
    other financial products. The information contained herein is not investment        no obligation to update forward-looking information if circumstances or
    or financial product advice and is not intended to be used as the basis for         management’s estimates or opinions should change except as required by
    making an investment decision.                                                      law. The reader is cautioned not to place undue reliance on forward-looking
                                                                                        statements.
    No representation or warranty, express or implied, is made as to the fairness,
    accuracy, completeness or correctness of the information, opinions and              This presentation does not constitute an offer of shares for sale in the United
    conclusions contained in this presentation. To the maximum extent                   States or to any person that is, or is acting for the account or benefit of, any
    permitted by law, none of OGI nor its directors, officers, employees or             U.S. person [as defined in Regulation S under the United States Securities
    agents, nor any other person accepts any liability, including, without              Act of 1933, as amended (the “Securities Act”) (“U.S. Person”)], or in any
    limitation, any liability arising out of fault or negligence, for any loss          other jurisdiction in which such an offer would be illegal. OGI’s shares have
    arising from the use of the information contained in this presentation.             not been and will not be registered under the Securities Act. We seek safe
                                                                                        harbour.
    Except for statements of historical fact, this presentation contains certain
    “forward-looking information” within the meaning of applicable securities           This document may not be reproduced, further distributed or published in
    laws. Forward-looking information is frequently characterized by words such         whole or in part by any other person. This document may only be
    as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate” and   disseminated or transmitted into any jurisdiction in compliance with, and
    other similar words, or statements that certain events or conditions “may” or       subject to, applicable securities laws. Readers are required to ensure their
    “will” occur. Forward-looking statements are based on the opinions and              compliance with applicable securities laws.
    estimates of management at the date the statements are made, and are
    subject to a variety of risks and uncertainties and other factors that could
    cause actual events or results to differ materially from those anticipated in

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Insights & Opportunities - TSX Venture (OGI) OTCQB Venture Marketplace (OGRMF) - OrganiGram
Meet the Executive Team

"
Insights & Opportunities - TSX Venture (OGI) OTCQB Venture Marketplace (OGRMF) - OrganiGram
Investor Highlights

 Consumer base to         Strategic location        Increased         Brand positioning        Team with
grow exponentially          to operate our       production with          & strategic           extensive
      with adult                business           fully-funded          partnerships          experience
     Strong Roots.
recreational market
  in October 2018
                           New Brunswick
                             – leading the
                                                    expansion
                                               Ready for the adult
                                                                        Differentiated
                                                                      products & brands
                                                                                             Cannabis, large
                                                                                              CPG brands,
   Canada  – global       cannabis charge in   recreational market    focused on quality    beverage alcohol,
     In our   plants,   our people                    launch         for the medical and
 leader in cannabis             Canada                                                      pharma, finance,
     & our company.                                                    adult recreational     horticulture
                                                                            markets

 #
Insights & Opportunities - TSX Venture (OGI) OTCQB Venture Marketplace (OGRMF) - OrganiGram
Organigram: Financial Snapshot
         Stock Data (TSXV: OGI)                                                     Financial Highlights
         Stock Price                                                $7.79            Revenue (Q3-2018)                                 $3.7M
         52 Week Low/High                                    $2.25 - $8.07           EPS                                               $0.02
         Avg. Daily Vol. (3 mo.)                                1,000,000            Cash & Cash Equivalents                         $155.8M
         Basic Shares Out.                                          125M             Debt                                              $98M
         Fully Diluted Shares (Excl. $5.42 debentures)              140M             Total Assets                                     $272M

         Fully Diluted Shares (w/ $5.42 debentures)                 161M             Total Liabilities                                $107M
                                                                                     End of Q3-2018                                   May 31

         Valuation Measures                                                         Share Price Performance LTM
         Market Cap                                                $975M

         Enterprise Value                                          $918M

         EV/Revenue                                                   75x

         Price/Tangible Book                                         5.9x

    Note: Stock Data figures as of September 11th, 2018.. Financial highlights as of OGI’s Q3-2018: May31-2018. Valuation measures
    calculated using July 27, 2018 share price and May 31st financial statement data.

$
Insights & Opportunities - TSX Venture (OGI) OTCQB Venture Marketplace (OGRMF) - OrganiGram
Recent                        Wabanaki
Awards
In November 2017,
Organigram was
recognized for product
quality and exceptional
service at the Canadian    Blueberry Cheesecake
Cannabis Awards.
The annual, voter-driven
event recognizes
best-in-class among
licensed producers
from coast-to-coast.
Current Lift Rating        Compassionate Pricing
4.3/5 Stars

%
Insights & Opportunities - TSX Venture (OGI) OTCQB Venture Marketplace (OGRMF) - OrganiGram
Cannabis Consumption: Forecasted Exponential Growth
      2017                        2018                                2021
      Medical Market              Adult Recreational Market
                                  Launch: October 17, 2018

                                                          Total Revenue:
                                                          $8.6B                                 Medical Revenue:
     Medical Revenue:                                     ! Medical & Adult                     $1.2B
     $435M                                                  recreational                        Patients:
                                                            markets
     Patients: 269,502                                    ! This is 40% of the                  450,000
                                                            Canadian alcohol
                                                            market

      ! As of December 31, 2017
                                                                                 Source: Russell Stanley, Echelon Wealth Partners

&
Insights & Opportunities - TSX Venture (OGI) OTCQB Venture Marketplace (OGRMF) - OrganiGram
Total Monthly Active Patients
    May 2017 to May 2018

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Insights & Opportunities - TSX Venture (OGI) OTCQB Venture Marketplace (OGRMF) - OrganiGram
Canadian Legislative                                  The Opportunity for
    Landscape                                             Organigram
    The Canadian Federal Government recently              § Premium high quality product
    announced that the adult recreational                 § Existing established customer base
    program marijuana will launch on                      § Increase production capacity in advance of
    October 17, 2018.                                       adult recreational market launch
                                                          § Leadership among the competition
    § Bill C-45 became law on June 21, 2018
                                                            – setting standards for product quality
    § Organigram part of select group of LPs that will    § Corporate social responsibility
      have significant product volume available for         – educating consumers on responsible
      the adult recreational marketplace launch
                                                            usage
    § Distribution will be via provincially operated
                                                          § Create and develop branded and
      stores in Ontario, Quebec, New Brunswick,
      Nova Scotia and PEI and via private retail stores
                                                            differentiated products
      in BC, Alberta, Saskatchewan, Manitoba and
      Newfoundland
    § All online sales will be run by the province
      except for Saskatchewan

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Insights & Opportunities - TSX Venture (OGI) OTCQB Venture Marketplace (OGRMF) - OrganiGram
New Brunswick

     We Call it Home. And it Makes Business Sense.
     § One of the lowest cost locations in Canada   § Low and predictable base power rate of
        • Operating cost                              5.2/kWh
        • Real estate                               § Significantly cheaper (up to 50% cheaper) than
        • Utilities                                   Ontario
        • Wages                                     § Skilled & motivated workforce
                                                    § Bilingual branding and services
     § Lowest general corporate income tax in
       Atlantic Canada

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Distribution Deals with Provincial Crown
     Corporations and other Retailers

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International Target Markets

)!
International Target Markets (cont.)
     Germany - Partnership with German Alpha-Cannabis which provides Organigram:
     1)   An immediate vehicle for larger scale export into the EU market.
     2)   The possibility to purchase synthetic CBD.
     3)   Strong partner for submitting an application to the soon to be released
          RFP for in-country cultivation (equivalent to ACMPR) from the German
          Health Regulatory Body (BfArM)

     Australia - Commence international export to Australian medical cannabis
     partner Cannatrek Medical through their partnership with leading global
     cannabis and hemp brokerage firm Cannada Management.

     Dealer’s License - Received Dealer’s License in May 2018 which allows the Company
     to conduct activities not permitted under ACMPR. The company can now develop, test
     and export an extensive range of products including its current offering of cannabis
     oils as well as an extensive range of derivative based products.

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Strategic Investment in Hyasynth
     • Hyasynth has developed a disruptive technology to
       naturally produce cannabinoids without the need
       to grow the cannabis plant. This is done by
       specifically designed strains of yeast.
     • To produce each unique cannabinoid, the process
       begins by inserting genes into the yeast`s natural
       metabolism which cause the production of
       cannabinoids within the yeast.
     • Via this process, Hyasynth has developed patented
       enzymes that work to convert from natural
       precursors to CBG, CBD and THC.
     • Each new yeast strain can be scaled to millions of
       litres of fermentation.
     • This process has the potential to create a global
       supply of pure cannabinoids at a fraction of a cost
       of a traditional cannabis cultivator

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Three Level Growing Technology
     !   Maximize footprint
     !   100% larger rooms in new expansion

)$
Exponential Production Growth
                                                                 § Fully funded (ongoing) facility expansion through
                                                                   Phase 4 up to 473,228 sq. ft.

                                                                 § Production capacity
                                                                     • Present: 36,000 kg/yr
                                                                     • April 2019: 62,000 kg/yr
                                                                     • August 2019: 89,000 kg/yr
Expansion Specifications                                             • October 2019: 113,000 kg/yr
                                  Target Construction Area
Phase            Status                  Date        (sq. ft.)

Phase 1          Complete                 N/A          31,600
                                                                         ‣ Expected pro-forma production capacity
Phase 2          Complete                 N/A         102,125

Phase 3          Complete                 N/A          40,000

Phase 4a         Under Construction    April 2019      93,000

Phase 4b         In Planning          August 2019      70,000

Phase 4c         In Planning          October 2019     82,000

Phase 5          TBD                      N/A          58,503

Approx. Project Total Sq. Ft /                        473,228
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Industry Leading Yields Driving Down Costs

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Key Performance Indicators

   Medical Patients             > $7.00                15%           $155 Million
  >15,000 Medical          Avg. selling price    Q/Q Sales Growth    Cash and Cash
Patients with an Active    per gram of dried        Gross sales       Equivalents
     Prescription         cannabis to medical     increased from      at Q3-2018
                                patients        Q2-2018 to Q3-2018

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Adult
      AdultRecreational
            RecreationalPortfolio
                         Portfolio––2018
                                     2018

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Product Portfolio for the Future
     The Green Solution
     § Exclusive Canadian intellectual property, product development and distribution agreement

     § Proven market leader based in Denver, Colorado
         • $100M + in cumulative product sales
         • 16 retail locations
         • 225+ unique cannabis products in portfolio
         • Recognized and award-winning product lines
         • Consulting to Organigram for development of:
             ‣ Commercial scale extraction and product processing
             ‣ Derivative product development
                  ü   Vaporizer cartridges and pens
                  ü   Proven leading edibles and beverage product mix
                  ü   Child-resistant packaging for all edibles and beverages

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Key Take Aways
     ! Organigram is well positioned to become a                                                                                !     Will open up the recreational market
       leading producer to both the medical and adult                                                                           !     Supply MOUs in NB, MB, PEI, AB
       recreational markets
            !     Medical continues to proliferate and gain
                  acceptance                                            ! Organigram is an efficient producer of
                                                                          premium quality product
            !     Adult recreational entering its infancy, a new market
                  for distribution                                         ! All-in costs of production less than $1/gram
                                                                           ! Average selling price over $7.00/gram
     ! Increasing Production and Processing
       Capabilities
                                                                                                                         ! Winner of two out of six product category awards at
         ! Current production capacity of                                                                                  2017 Canadian Cannabis Awards
           36,000 kg per year
            !     Fully funded to complete expansion
     ! Positioned well for Regulatory Changes
            !     Adult use program launch
                  in October 2018

!)   Organigram was recognized as a TSX Venture 50TM company in 2017. TSX Venture 50 is a trademark of TSX Inc. and is used under license.
Thank You!
     Contact Information:
     Organigram Holdings Inc.
     35A English Dr.
     Moncton, NB, E1E 3X3

     investorrelations@organigram.ca
     Direct Line: 416-639-2144
     Toll Free: 1-844-644-4726 Ext. 401

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Appendix A: Management
     Greg Engel – Chief Executive Officer and Director                                              Raymond Gracewood – Chief Commercial Officer
     Mr. Engel is a senior executive with 30 years of National and International experience in      As the previous Senior Director of Sales and Marketing for Moosehead Breweries Ltd., Mr.
     the pharmaceutical, biotechnology, cannabis and consumer packaged goods industries.            Gracewood is a leading brand and marketing professional in Atlantic Canada. With more
     Mr. Engel has led the creation, development and growth of several companies over the           than 15 years of experience in the marketing space, he is a strong speaker on brand,
     span of his career. An articulate and trusted voice in the burgeoning Canadian cannabis        packaging and positioning, both locally and throughout North America. He has extensive
     space, Mr. Engel most recently worked with a competitive licensed producer to become           experience in building and developing brands, positioning and segmentation. Mr.
     the first Canadian exporter of medical cannabis, as well as the establishment of several       Gracewood holds a Bachelor of Business Administration degree from the University of
     trailblazing industry standards. As leader at Organigram Inc, Mr. Engel is focused on          New Brunswick.
     reputational excellence through product quality and safety, expansion of the company’s
     Moncton, N.B. facility, and production efficiencies to position the company as a leader in     Tim Emberg – Vice President of Sales and Commercial
     the Medical and Adult Recreational Cannabis industries. Mr. Engel graduated from the
     University of Guelph with an Honours Bachelor of Science in Microbiology.                      Operations
                                                                                                    Mr. Emberg is a senior sales and marketing executive with over 20 years experience in the
     Jeff Purcell – Vice President of Operations                                                    pharmaceutical, OTC and consumer packaged goods industry. As the previous Head of
                                                                                                    Marketing & Executive Director of Sales for Roche Diabetes Care Canada, Mr. Emberg
     Mr. Purcell assumed the position of Vice President of Operations of Organigram Inc. on         built and led several sales and marketing teams to success over the years. Mr. Emberg
     June 12, 2017. He is filling a key role on the company’s Senior Leadership Team, as a          has also held many progressively growing commercial roles in other top-tier
     seasoned professional in the areas of large scale production and facility expansion. Mr.       organizations such as Jamieson Laboratories and Frito-Lay Canada. Mr. Emberg holds
     Purcell has the responsibility and oversight for the entire production facility including      a Bachelor’s degree from the University of Ottawa.
     production, engineering and maintenance, construction, quality assurance, safety,
     security and the company’s vision for oils and extract products. Mr. Purcell brings over 25
     years of experience to the role, most recently as Vice President of Operations at Ganong
                                                                                                    Guillermo Delmonte – President of International Operations
     Bros. Limited with responsibilities including implementation of quality systems, safety,
                                                                                                    A proven leader in the international cannabis and CBD marketplace, Mr. Delmonte joins
     and continuous improvement initiatives. While in the role, he was also responsible for a
                                                                                                    the Organigram team following two and a half years as Chief Executive Officer at ICC
     significant facility expansion, essentially creating an entirely new production environment.
                                                                                                    Labs Inc., a leading international hemp and cannabis producer. In this role, he successfully
     Prior to Ganong, Mr. Purcell spent over 15 years in progressively senior roles leading
                                                                                                    oversaw the ICC's initial public offering (IPO) as the first South American cannabis
     operations at McCain Foods. Mr. Purcell holds a Bachelor of Commerce degree, from St.
                                                                                                    company to go public with a first day valuation of more than $120 million CAD.
     Mary’s University.

     Paolo De Luca – Chief Financial Officer                                                        Michael Tripp – Chief Legal Officer
                                                                                                    Mr. Tripp worked for private practices at respected business law firms in Moncton and
     Mr. De Luca joined Organigram on December 19, 2017 bringing over 20 years of
                                                                                                    Toronto where he acted on over $3 billion in transactions.
     diversified financial business experience. Mr. De Luca has held senior financial, investor
     relations, and accounting leadership roles at companies including West Face Capital, one
     of Canada's leading alternative asset management firms; Meridian LNG; Potash Ridge;
     C.A. Bancorp; and TD Securities.

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Appendix B: Board of Directors
     Peter Amirault – Chairman                                                                  Michel Bourque – Director
     Mr. Amirault is currently the President of BML Group Limited. Prior to joining BML         Mr. Bourque brings more than 25 years of sales and marketing leadership experience
     Group, Peter held varying executive roles including: President of Swiss Chalet North       in the pharmaceutical industry, having worked in the branded Rx, generic Rx and
     America for the Cara Group of Companies, CEO of Creemore Springs Brewery Ltd,              branded/private label OTC sectors. Over this time, he has successfully led teams in the
     Senior Vice President of Molson Coors Canada, Managing Director of Sleeman                 specialty medicine, hospital, and retail key account areas driving profitable growth
     Brewing Ltd, along with senior roles at Nestle Canada and The Premium Beer                 through strategic planning and the implementation of innovative value-added
     Company of Toronto. Peter holds a BBA from Acadia University and an MBA from The           programs. Mr. Bourque holds a Bachelor of Business Administration degree from
     Schulich School of Business. Peter brings a wealth of knowledge with his previous          l’Université de Moncton.
     board experience and roles at senior management levels.

                                                                                                Dr. Kenneth Mitton – Director
     Derrick West – Audit Committee Chair
                                                                                                Dr. Mitton is a highly respected physician, practicing in Moncton, New Brunswick. Dr.
     Mr. West currently serves as the Chief Financial Officer and Corporate Secretary of        Mitton has practiced medicine for over 30 years as a family doctor. He also advises a
     Partners Real Estate Investment Trust, a TSX listed issuer, and has previously served as   number of large corporations in New Brunswick, with respect to occupational health
     the CFO of a TSXV listed international mining service enterprise and as the Vice-          matters. Dr. Mitton has previously served as the Chief of Staff of the South-East
     President of Accounting and Administration for a TSX listed REIT. Mr. West                 Regional Health Authority (now the Horizon Health Network) and is currently the
     commenced his career with Grant Thornton LLP where he obtained his Chartered               medical director of The Moncton Hospital. Dr. Mitton holds a Bachelor of Science and a
     Accountancy designation and is an active Chartered Professional Accountant.                Doctor of Medicine Degree from Dalhousie University.

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