Organigram Enters Partnership with Phylos Bioscience to Enhance Cannabis Genetics and Technical Capabilities

LOS ANGELES– Organigram Holdings Inc, a licensed producer of cannabis, announced today that it has forged a comprehensive technical and commercial relationship with Phylos Bioscience Inc., a renowned U.S. cannabis genetics company based in Portland, Oregon. This partnership aims to bolster Organigram’s cultivation efforts in Canada through the utilization of patent-pending foundational technologies and genetics. Additionally, Organigram intends to explore the exportation of THCV products to select legal international markets, pending necessary approvals and permits.

“This represents Organigram’s initial investment in the United States and aligns with our strategy of developing cost-effective and innovative cannabis products that cater to consumer preferences,” stated Beena Goldenberg, Chief Executive Officer of Organigram. Goldenberg emphasized the increasing diversity of cannabis usage and the particular interest in genetics with high concentrations of novel cannabinoids like THCV. THCV has gained attention for its potential appetite-suppressing effects, providing an energizing and uplifting experience that differs from the perceived appetite-stimulating effects of THC. The partnership with Phylos also offers a commercial pathway from seed to flower, expected to reduce operational costs and improve margins. By using genetically identical seeds with stabilized characteristics, such as potency, terpene profile, aroma, and minor cannabinoid concentrations, the need for cloning and propagation is minimized, leading to increased plant vigor and health. Organigram intends to expand the reach of THCV and stable cannabis genetics into emerging and profitable international markets.

Ralph Risch, Chief Executive Officer of Phylos, highlighted the scientific foundation of their collaboration, stating, “Phylos is built on science. We mapped the cannabis genome in 2016 and have developed a suite of proprietary and patent-pending processes, technologies, and products.” The partnership with Phylos is expected to accelerate Organigram’s product development efforts and enhance its cost-effectiveness as a producer. The shared focus on science and innovation will drive immediate benefits in legal markets.

THCV (Delta 9-Tetrahydrocannabivarin), a minor cannabinoid, offers a distinctive user experience with an energizing and focused effect and minimal cognitive impairment or intoxication compared to THC. Phylos has developed proprietary high-THCV genetics in various THCV:THC ratios, enabling differentiated user experiences and a wide range of product formats.

Phylos’ production-ready seeds, known as F1 Hybrid Phylos Production-Ready Seed™, allow for direct sowing of cannabis seeds, streamlining production compared to clone-based methods. Seed-based production offers economic advantages by reducing labor requirements and optimizing facility space previously used for raising clones. Furthermore, Phylos maintains a suite of phenotypically stable “parent” genetics, enabling the breeding of vigorous, uniform plants with stable and highly consistent desirable qualities sought after by consumers.

This partnership is expected to strengthen Organigram’s capabilities in several ways:

1. Organigram will become the first Canadian licensed producer to release high-potency, whole-plant-derived THCV in Canada based on Phylos’ genetics platform.
2. Seed-based production methods will modernize cannabis production and enhance scalability for Organigram.
3. Access to new, proprietary genetic identification tools will facilitate the efficient and rapid development of unique, proprietary cultivars driven by consumer preferences.
4. Organigram will develop seed-based F1 hybrid genetics for key brands, such as SHRED, opening potential opportunities for licensing seed-based genetics and an established cannabis brand in the United States and other legal markets.

The agreement includes a convertible loan arrangement, with Organigram providing up to US $8 million to Phylos in three tranches. The loan will accrue paid-in-kind interest and be convertible into common share equity of Phylos under