Canadian CANNAINVESTOR Magazine June / July 2018 | Page 199

conditions in the present grow, but also to analyze what those optimal conditions are to help with our yields and cannabinoid profile. I think it is inherently different growing in a facility like ours than having a few plants that you tend as a hobby. With our phase 3 expansion which is now also online we project to be able to produce 36,000 kilograms annually and thus, a trimming system is somewhat needed. Having said that, we have introduced a line of our ultra-premium flowers called Edison Reserve for the recreational market, in which we hand trim and cure all flowers.

CCIM: I started the questions discussing the May 15th tour. May 15th is also the same date that Organigram had two significant news releases:

1) Organigram Unveils Comprehensive Suite of Adult Recreational Cannabis Brands

2) Organigram Announces Receipt of License for Controlled Drugs and Substances from Health Canada

For the benefit of our readers, the licence referenced in (2) is what is commonly referred to as a “Dealer’s License.” Perhaps you could explain succinctly what a Dealer’s License is from there the significance of these two events.

OGI: No problem. A Dealer’s License allows the company to conduct research and develop forms using cannabinoids that companies are not currently permitted to sell under the current ACMPR rules. This could be as simple as working on vape pens, which we anticipate to be able to sell in mid- to late- 2019 to developing beverages or new pharmaceutical forms. A Dealer’s License also allows us the ability to export cannabis oil to foreign jurisdictions either in the current formulations we sell in Canada or in other forms not allowed for sale in Canada currently. Your readers may be aware that we recently announced an export deal to Cannatrek in Australia. This deal came before the receipt of our Dealer’s License and as such we were only able to sell dried flower to our Australian partners. We now have the ability to export any range of cannabis oils should they express interest in that product.

We recently released our Phase 1 adult recreational branding strategy, which is designed as a ‘house of brands’ model. We feel that our portfolio, which includes The Edison Cannabis Company, Ankr Organics and Trailer Park Buds, is very well-rounded and offers appeal to a range of consumers in various need states.

CCIM: On May 8th, you announced that OGI had entered a non-binding term sheet to acquire up to 25 per cent of alpha-cannabis Pharma GmbH ("Alpha-Cannabis Germany" or "ACG") located in Stadthagen, Germany. What does this mean from a shareholder’s perspective?

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