As licensed producers look for new options beyond pre-rolled dried flower products to provide for a consumer base seeking diversity, Organigram Holdings Inc. (NASDAQ: OGI, TSX-V: OGI) just landed a lucrative partnership with PAX Labs.
Organigram is now one of only four cannabis companies selected to offer products compatible with the PAX Era oil vaporizer.
The other selected partners from across the Canadian licensed industry included Aphria (TSX: APHA; NYSE: APHA), Aurora (NYSE: ACB; TSX: ACB), and The Supreme Cannabis Company (TSX: FIRE; OTCQX: SPRWF).
Under the terms of the partnership, Organigram will fill PAX Era compatible pods at the company’s Moncton facility. Those vaporizer oil pods will be branded with Organigram’s Edison Cannabis Company label and shipped to all 10 of the company’s existing provincial retailer partners.
Discussing the need for newer, industry-disrupting offerings that take advantage of tech advances, Organigram’s Chief Executive Officer Greg Engel commented:
Organigram is already shipping Edison oil products in other formulations to partners around the country, which are produced through extraction deals previously struck with Valens GroWorks and 1812 Hemp.
Seeking even more options beyond dried flower and oil products, the company also recently announced a major investment into upgrading a production facility to include an automated chocolate assembly line.
Expected to go into full operation later this year, that upgraded facility will produce cannabis-infused chocolate products after edible cannabis regulations are officially handed down from Health Canada in late 2019.
In other Organigram news, earlier this week the company announced that a $115 million term loan and $25 million revolving credit facility were secured through the Bank of Montreal, which will mature in mid-2022.
Those newly secured funds will go towards continued expansion as the company completes phases 4 and 5 of current facility upgrade projects at the Moncton campus. That site is projected to hit a production capacity of 113,000 kg of dried flower and other product types by the end of the year.