New Brunswick

OrganiGram secures $5M in credit to expand medical marijuana plant

OrganiGram says demand for its medical marijuana is growing and it has now secured $5 million in credit, which it will use to expedite expansion of its Moncton facility.

Demand for product at Moncton facility is growing, says president Roger Rogers

A Moncton-based medical marijuana company that went public last summer has secured $5 million in credit, which it plans to use to accelerate its growth strategy.

OrganiGram says demand for its medical marijuana is growing. (CBC)
OrganiGram Holdings Inc. has experienced a "significant increase" in patient registrations over the past few months and recently completed four new grow rooms, president Roger Rogers said in a statement on Wednesday.

The new rooms are expected to be in operation by the end of June, pending inspection by Health Canada, he said.

"We are very pleased to have negotiated a non-dilutive form of financing," said Rogers, referring to two letters of interest that will provide long-term debt totalling $5 million.

OrganiGram went public in August, saying it needed investors to expand its operations to meet the anticipated demand for its product.

Health Canada has estimated medical marijuana sales will hit $1.3 billion annually by 2024.

Comments

To encourage thoughtful and respectful conversations, first and last names will appear with each submission to CBC/Radio-Canada's online communities (except in children and youth-oriented communities). Pseudonyms will no longer be permitted.

By submitting a comment, you accept that CBC has the right to reproduce and publish that comment in whole or in part, in any manner CBC chooses. Please note that CBC does not endorse the opinions expressed in comments. Comments on this story are moderated according to our Submission Guidelines. Comments are welcome while open. We reserve the right to close comments at any time.

now