Yesterday, OrganiGram Holdings Inc. (OTC:OGRMF) (TSXV:OGI) announced that they completed the design for their new addition to their existing production facility in New Brunswick, Canada. The new addition is expected to increase OrganiGram's annual cannabis production by 9,000 kg per year.
The additions are being made to OrganiGram's existing production facility, at 35 English Drive in Moncton, NB. The company believes that the expansions should be complete by spring of 2018, but hopefully sooner.
A Lot More Pot
9,000 kg. is equivalent to an additional 19,841.6 lbs per year or approximately 9.92 US tons of cannabis. That's more marijuana than the weight of 3 Ford F-150 pickup trucks. According to OrganiGram, this additional production capacity "combined with the previously announced and ongoing expansions to both buildings, this new addition brings the total proposed production capacity at OrganiGram to approximately 26,000 kg per year."
Financing the Expansion
By choosing to make additions to their existing production facility rather than acquiring or developing new properties, "this makes construction quicker, less expensive, and permits [OrganiGram] to increase [their] production capacity much sooner than many of [their] peers."
OrganiGram expects that the expansions will be fully funded by their existing cash on hand as well as with proceeds from their current bought deal financing round for $35 million that is expected to close on December 7th.