OrganiGram gets $990K from New Brunswick government
Moncton's medical marijuana company plans to expand through payroll rebates over 3 years
The New Brunswick government is giving up to $990,000 to Moncton's medical marijuana company OrganiGram through payroll rebates.
OrganiGram's expansion plans are based on dramatic growth in the number of medical marijuana prescriptions and the anticipated lucrative market for recreational use, given the Trudeau government's plans to legalize marijuana.
"Our industry has the potential to be a once in a generation opportunity for growth and economic development as we move towards a recreational marketplace," CEO Denis Arsenault said in a statement.
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"We are from New Brunswick and we're excited to invest at home where the advantages of a well-educated work force, low power rates and a competitive cost of living make New Brunswick and Moncton a logical place for our future," he said.
OrganiGram is the only company in Atlantic Canada that's licensed to grow and sell medical marijuana and one of only 30 legal pot producers in Canada.
It started shipping product out to customers about a year ago.
Health Canada has estimated medical marijuana sales will hit $1.3 billion annually by 2024.
Last April, OrganiGram secured $5 million in credit to accelerate its growth strategy.
The company went public in August 2014, saying it needed investors to expand its operations to meet the anticipated demand for its product.
The latest funding is being provided through Opportunities NB Inc. The Crown corporation will offer a payroll rebate of up to $8,761 for each position created and maintained, with a total value not exceeding $990,000, according to the government release.
The incremental annual payroll for 113 positions will be $5.1 million at full ramp-up and will increase the GDP by $9 million per year, the government said.
- An earlier version of this story indicated the funding was conditional on the company doubling its workforce to 86. In fact, the funding will help create up to 113 jobs.Mar 31, 2016 10:54 AM AT