OrganiGram Holdings Inc (OTCMKTS:OGRMF) has announced that it has been chosen by the Trailer Park Boys, based in Nova Scotia, as their exclusive Canadian cannabis producer, brand developer and business partner. As per the agreement, the company would be working closely with the management at TPB Productions Ltd, so as to develop a competitive product portfolio, as well as branding and packaging for the users of recreational marijuana. Moreover, Oranigram would serve as the exclusive distributor for the products.
Ray Gracewood, the CCO of OGRMF, stated that the relationship would solidify their strategic building blocks, as they continue to plan for the legalization of recreational cannabis, in Canada. He also revealed that TPB had a vision to develop a national brand and it was exciting to know that OGRMF could assist them. Mr. Gracewood also reaffirmed that OgraniGram would continue to supply world class cannabis, to its patient base. He clarified that the said partnership was aimed at utilizing opportunities that would be available, once recreational cannabis has been legalized.
It should be noted here that TPB was represented by the Sonic Entertainment Group, in this transaction. Louis Thomas, the president of Sonic Entertainment, stated that they were carefully monitoring the situation in Canada, to understand how best they could enter the market. He further claimed that the timing of this partnership and the selection of OrganiGram was decided after meeting with the executive team of OGRMF. The agreement between the two entities would be valid for a period of 5-years.
The announcement comes just a week after OgraniGram announced its financial results for the 3Q2016 and also provided an operational update. In the update, the company stated that it has started construction of its fully funded expansion plans, announced earlier, which are due to be completed by fall 2017. Once complete, the expanded facility would be able to deliver a production capacity of an estimated 17,235 kg of flower per year, which translates to over $100 million in annual sales.
OrganiGram Holdings Inc (OTCMKTS:OGRMF) had a trade volume of 387,421 and gained 26.07%, during the November 23 trading session, to close at $2.47 per share.