Organigram Holdings Inc COM NPV (OTCMKTS:OGRMF) announced completion of the designing of its proposed facility that can increase its annual capacity by 26,000 kg. The new production facility shall be created at Moncton.
Organigram’s Expanding Portfolio
The new production facility, the company announced, shall help the company’s plant in producing 9,000 kg more product on a yearly basis. This means that the total production capacity will rise up to 26,000 kg a year.
The new facility for surplus production is expected to be in its final stage by spring 2018. Additionally, its expansion plans will also coincide with this facility completion. It has to be noted here that the completion of production facility shall be done on the perfect deadline since spring is said to be the best time for rising cannabis demand.
In order to complete the project, the company shall make use of its operating cash along with the cash from recently stuck deal that will be finalized anytime in the coming week.
The CEO of company, Denis Arsenault said that the company ensured to remain focussed on getting hold of “economies of scale.” Cost efficiency is a vital factor for this. The CEO noted that proper management of cash flow was important to achieve the expanding projects with success.
The CEO of company says that the new production facility sits at an ideal location. The new plant location will ensure rapid and cost-effective expansion.
Organigram Holdings is looking forward to enhance its existing portfolio by expansion. It is vital to note that the growth strategy of company comes in the backdrop of recent deal with Trailer Park Boys. With a vision of being at the top slot of cannabis industry, the company is in a profitable stage to enhance its production, especially when the U.S. has given its nod to recreational marijuana.
The CEO calls this expansion, an effort that will benefit the entire industry and not just the company.