Organigram increases Phylos loan by $3-million (U.S.)

Executive Summary

• Organigram Global Inc. has entered into an amended loan and product agreement with Phylos Bioscience Inc., expanding its innovation investment to secure priority access to Phylos's autoflower genetics pipeline.
• The agreement includes a $3 million (U.S.) convertible loan top-up, bringing the total loan principal to $10 million (U.S.), and grants Organigram five-year exclusivity on chosen autoflower cultivars in key international markets.
• This strategic move aims to secure next-generation cultivars for consistency, scalability, and economic benefit, strengthening Organigram's position in recreational and medical cannabis markets globally.

Key Details

• Transaction Structure: Amended loan and product agreement between Organigram Global Inc. and Phylos Bioscience Inc.
• Financial Terms:
  • New advance: $3 million (U.S.).
  • Combined total loan principal: $10 million (U.S.).
  • Loan maturity: May 25, 2028.
  • The loan is subject to conversion or other resolution mechanisms under the amended agreement.
• Strategic Rights & Exclusivity:
  • Organigram gains priority access to Phylos's autoflower genetics pipeline.
  • Five-year exclusivity on chosen autoflower cultivars across international markets, including Canada, Australia, the United Kingdom, Germany, and Israel.
  • Ability to add new exclusive territories as Organigram expands globally.
  • Annual portfolio reviews will maintain exclusivity only for commercially relevant cultivars.
• Strategic Rationale:
  • Secures portfolio breadth of next-generation cultivars.
  • Provides unprecedented consistency, scalability, and economic benefit in cultivation.
  • Establishes a foundation for product differentiation and growth in recreational and medical markets.
  • Accelerates development of new traits and F1 hybrid seeds by Phylos.

Notable Quotes

• Borna Zlamalik, Senior Vice-President, Innovation and International R&D at Organigram: "Seed-based cultivation has become a key advantage of Organigram's cultivation strategy, giving us unprecedented consistency, scalability and economic benefit. Our follow-on investment in Phylos secures the portfolio breadth of next-generation cultivars required to meet the needs of Organigram's consumers and patients."
• Ralph Risch, Chief Executive Officer of Phylos: "Organigram saw early that the next phase of cannabis production would be driven by scientifically bred genetics. Their investment allows Phylos to accelerate development of new traits and F1 hybrid seeds while giving Organigram a meaningful economic advantage as the first to deploy those innovations at commercial scale."