As we begin the year 2016, OrganiGram would like to extend its best wishes for a happy, healthy and prosperous New Year. There has never been such an exciting time of change and evolution in the marijuana industry as we are experiencing today and we look forward to continuing with this momentum moving forward. In the last year, we have been able to achieve several milestones, increasing sales significantly from quarter to quarter, providing an exceptional customer experience, completing the third phase of our expansion and producing a high quality product. These and others have all been achieved while maintaining good cost control in the organization.

Maintaining our commitment to provide Canadians all across the country with reliable access to high quality medical marijuana products that they can trust, we are pleased to have recently imported additional genetic material from licensed seed banks in the Netherlands. Including several award winning strains, this will allow us to further expand our organically grown selection of high CBD and THC products. This is a systematic process that will involve the growing and testing of a variety of new phenotypes, after which the best performing strains will be selected by our team and included in our future production cycles.

Based on a recent survey, a significant portion of our clients indicated an interest in using cannabis extract products, either exclusively or in combination with dried marijuana. Providing a diversified line of cannabis extract products remains a top priority for us, beginning with cannabis oils, and we look forward to providing additional information regarding availability in the coming weeks. Using extract products allows yet another way for clients to consume their medicine and we are pleased that we will be able to offer this option.

As we gear up for the imminent legalization of the recreational use of marijuana in Canada, we plan to complete the construction of an additional six large grow rooms within the existing facility, bringing our annual capacity to over 3,100 kg. Furthermore, we will be connecting the adjacent building to our current facility, allowing access to an additional 12 grow rooms and providing annual production capabilities of approximately 7,500 kilograms. In order to provide working capital to continue this expansion and continue to onboard clients at a rapid rate, we have secured an additional $6.4 million of financing, as announced in a previous news release.

As we wrap up an eventful 2015 and shift our momentum into the new calendar year, I would like to take a moment to thank our valued staff, shareholders and clients in their continued support. As we look forward at 2016, we anticipate another year of great growth and bringing additional value to all of our stakeholders while capitalizing on the many opportunities the year will bring.

Roger Rogers
President and CFO
OrganiGram Inc