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Transaction liquidates non-strategic asset to one of Organigram’s most trusted clinic partners
MONCTON, NB, Oct. 17, 2018 /CNW/ – Today, Organigram Holdings Inc. (TSX VENTURE: OGI) (OTCQX: OGRMF), the parent company of Organigram Inc. (the “Company” or “Organigram”), a leading licensed producer of medical marijuana, is pleased to announce the completed sale of Trauma Healing Centers (THC) to Harvest Medicine Inc. (“HMed” or “Harvest Medicine”), a medical cannabis clinic group located in Edmonton and Calgary, Alberta. Harvest Medicine is a wholly-owned subsidiary of VIVO Cannabis Inc. (TSX-V: VIVO, OTCQB: VVCIF).
“Our top priority as a company is, and will continue to be, our commitment to our patient community. As our industry evolves, we have become increasingly confident in our strategy to focus on producing the highest quality cannabis at Organigram which has us reassessing our investments in clinic operations” stated Greg Engel, CEO at Organigram. “As a function of this focus, we believe the patients and clients of Trauma Healing Centers will benefit from the experience and expertise of our partners at Harvest Medicine”.
THC is a multi-disciplinary clinic network that has been providing medical cannabis care and education to thousands of patients in Nova Scotia, New Brunswick and Ontario since 2014. Trauma Healing Centers specializes in medical cannabis assessment and prescribing but also offers patients individualized, multi-disciplinary wellness plans.
Both THC and Harvest Medicine share a deeply ingrained patient-centric approach to care. The transition of THC to Harvest Medicine offers THC the opportunity to continue to flourish under the management of an experienced medical management team, wholly committed to the day-to-day operation of exceptional medical cannabis clinics.
THC currently has locations in Nova Scotia, New Brunswick and Ontario.
“We are pleased to see two excellent organizations join forces to offer Canadian medical cannabis patients access to outstanding care,” says Greg Engel, CEO, Organigram. “We are proud of our relationship with THC and look forward to seeing the outstanding team at Harvest take the delivery of care to the next level.”
Organigram will continue to focus on supporting patients through the production of high quality medical cannabis. As previously communicated, the company has committed to ensuring availability of medical products for the company’s 15,000 medical patients and has also recently announced it will cover the cost of the $1/gram (or 10 per cent of sale price) federal excise tax about to be implemented on all medical cannabis products.
“Medical cannabis customers continue to be extremely important to us,” says Engel. “Even as we ramp up to a legal adult use recreational cannabis market, we look forward to continuing to apply our tremendous product development expertise and developing technology to helping ensure patients across the country have access to the strains and quality of product that meet their specific needs.”
“The excise tax will cause undue hardship and serve as an unnecessary barrier to access for medical cannabis patients,” says Engel. “We believe Canadians who have come to rely on medical cannabis should not be affected by changes brought on by Canada’s recreational cannabis program.”
The transaction will see HMED acquire 100% of the issued and outstanding shares of THC from Organigram. The total purchase price for the shares will be $1,200,000, to be satisfied by the issuance of common shares in the capital of VIVO at a price per share equal to the ten trading day volume weighted average price immediately prior to the closing of the transaction.