OrganiGram Holdings Inc.


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August 10, 2015 Issue

The Most Powerful Name In Corporate News and Information


Licensed Medical Marijuana Producer


Roger Rogers



OrganiGram Holdings Inc.



Interview conducted by:

Lynn Fosse, Senior Editor, CEOCFO Magazine, Published – August 10, 2015


CEOCFO: Mr. Rogers, what is the concept for OrganiGram?

Mr. Rogers: OrganiGram is a licensed producer (LP) of medical marijuana in Canada. We grow, harvest and package product to be sold as a treatment for various medical conditions. We accept prescriptions from doctors for patients and we ship directly to our clients across the country.


CEOCFO: Medical marijuana is a growing field. What do you understand about the whole process that allows you to come up with something that is better, faster, cheaper, easier and more on target with what people need?

Mr. Rogers: First of all, we are the only organic producer within the country, which we find is a definite advantage for many of our patients because many of these people suffer from serious illnesses and want as healthy of a product as possible. Therefore, to have an organic product is definitely appealing to them. We are also the only LP in the Maritimes and thus we have a lower cost production, lower cost of electricity and labor force. Our production team is both highly qualified and experienced which is continually resulting in improved yields harvest after harvest.


CEOCFO: Is there a need for more education when it comes to medical marijuana?

Mr. Rogers: It is a brand new industry and the educational part both from a physician perspective as well as from a patient perspective is just starting. Many people are not aware of the product or the benefits of it. However, it is definitely improving quickly and becoming much more common as a method of medical treatment. You will continue to see more and more information and discussion through social media, the press, conferences and in other forms out there for educational purposes.


CEOCFO: Are you talking about medical marijuana in general, organic or both?

Mr. Rogers: I am talking more about medical marijuana in general.


CEOCFO: How do you get the idea that medical marijuana can be grown organically and become mainstream?

Mr. Rogers: We are regulated by Health Canada and we are not allowed to advertise to the general public. We can educate doctors and existing patients, but from the ability to put information out there to the general public, it is somewhat limited. That being said, we do promote our organic side on our website. We also promote it through any interactions that we have, whether it be conferences or just general inquiries from the public and/or physicians.


CEOCFO: What are some of the challenges in growing an organic product?

Mr. Rogers: There are two things. One, we do not have the latitude to utilize the pesticides that are available for other growers, so that is definitely a challenge. However, we have come up with alternatives that provide us a product that is of equal or better quality. The second thing is that we are not allowed to use any method of non-organic treatment on the product to ensure that it is bacteria and mold free. Therefore, we had to come up with an alternative method of drying and curing to make sure that our products meet those standards. All of our products are tested prior to being released to the public by an independent laboratory to ensure that the highest quality standards are met.


CEOCFO: Was the decision to be organic from day one or did it develop over time?

Mr. Rogers: Yes, the decision to have an organic product was from day one, and definitely a point of differentiation.


CEOCFO: Would you tell us about your facilities and planned expansion?

Mr. Rogers: We are located in Moncton, New Brunswick, and currently have a facility that exists with three large grow rooms and 11 grow pods that have been approved and are in full production at this point. We also have a large expansion that is mostly complete. We have 4 more grow rooms, for which we are awaiting inspection and approval from Health Canada, to continue to expand and meet our rapidly growing client base and product demand. We also have four additional rooms that are largely constructed and will be utilized in the coming months.


CEOCFO: What about the variety of products that you offer?

Mr. Rogers: We have a large portfolio of products. The two main components in medical marijuana are THC and CBD. We have products that vary in their THC level and are separated between Indica and Sativa types. Depending on what your needs are, clients choose from an array of strains, which have varying different levels of THC. We also have CBD strains, which is a differing medical component of the product. We have a portion of our client base who are looking for higher levels of CBD and less THC. We are continually unveiling new strains to the marketplace and as we expand our facility, the list of available strains for our clients will continue to increase.


CEOCFO: What is the process of how and when a client comes to you? Do you have the opportunity to share information about all of your products or is it just filling a prescription?

Mr. Rogers: A patient goes to see their doctor who prescribes medical cannabis and the dosage.  The original prescription is then sent into us either physically or electronically through a secure portal. We then validate the documentation with the doctor to confirm that he or she provided the prescription and the amount given. Once that is confirmed, we then register the client. At that point, our customer service department, which is best in class, will speak with the individual, go through our various products, what we have, what they are looking for and what their specific illness is if they wish to share that. The order is then placed with next day shipping.


CEOCFO: Are there certain products that do not get the traction you would expect?

Mr. Rogers: I do not think that there are. Our clients differ, depending on their illness, age, needs, past experience and many other factors. We have the portfolio to meet the needs of anyone that comes to us.


CEOCFO: OrganiGram recently released some new products. How do you decide on the new offerings?

Mr. Rogers: Our Company and all of the other LPs are all somewhat limited by what strains that we have in our facilities. When the licenses were originally handed out, what you had in your facility was the product line you had to begin with. While there are methods of obtaining new strains, it can be time consuming before it is available for the market. Therefore, you utilize the strains that you have available, and we currently have 26. Some of the LPs have similar strains but many have specific genetics that are proprietary only to that company.


CEOCFO: What attracted you to the opportunity at OrganiGram?

Mr. Rogers: First, to build a company from the ground up is an opportunity that not many people have in their career. On top of that, it is very rare in someone’s career that they get to participate in building an entire industry nationwide. That is a real privilege!


CEOCFO: What is the acceptance in Canada for medical marijuana today?

Mr. Rogers: As education continues, it is becoming more and more accepted day-by-day. While not accepted by all it is definitely becoming more commonplace as an alternative medicine. The industry is covered in some manner on almost a daily basis and as you read the many articles and press, much of it is very positive.


CEOCFO: How is business these days?

Mr. Rogers: Business is very good. We are experiencing double-digit growth month-over-month, and that has been going on for most of this year. I do not foresee this changing anytime in the near future. Our production efficiencies and yields are improving day after day, so it is going well on that side also. Our client acquisition and our initiatives behind that are extremely positive, so we are having a very good year overall.


CEOCFO: What is the investment opportunity? Are people interested or are somewhat reluctant?

Mr. Rogers: We have seen a combination there of. We definitely have a large group of investors, both initial and subsequent. We have currently, which will be released in the very near future, finalized a subsequent round of additional financing that just came in. The public markets are the public markets and you cannot control share price or the appetite that individuals have or not for a specific industry. However, as both ourselves and other producers, in which only four are public, start to release positive earnings, it will continue to increase the appeal.


CEOCFO: Why the decision to become a public company?

Mr. Rogers: The obvious reason would be to raise money. To do that there are some downsides to being public, such as a great deal of scrutiny and reporting associated with it. However, I believe that it makes you a better company because of the requirements, governance and oversight placed upon you by both the TSX and other regulators.


CEOCFO: Does it help win credibility?

Mr. Rogers: I believe that it does help to lend credibility to the organization, as everything is very open, public and reported. It is very different from being private whereby a few shareholders can make the decisions. However, being public you have a vast group to whom you are accountable.


CEOCFO:  Why pay attention to OrganiGram Holdings?

Mr. Rogers: OrganiGram Holdings is poised for tremendous growth, both from a share price and from what is going on within the facility. We have been very successful at creating a magnificent team, we have best in class senior leadership, our growth is astronomical and it is my opinion that the opportunity to invest in OrganiGram will provide high returns for those willing to stay the course.


“First, to build a company from the ground up is an opportunity that not many people have in their career. On top of that, it is very rare in someone’s career that they get to participate in building an entire industry nationwide. That is a real privilege!”
- Roger Rogers


OrganiGram Holdings Inc.


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