Organigram Global Inc. · TSX:OGI
Organigram Global — Q1 2020 Earnings Presentation
15 slides from Organigram Global's earnings presentation, Jan 14, 2020
Slide 1: OGI Q1 Fiscal 2020 Results
OGI Q1 FISCAL 2020 RESULTS January 14, 2020 NASDAQ (OGI) TSX (OGI) OGI INVESTORS’ PRESENTATION |
Slide 2: Cautionary Statement
Cautionary Statement This document is current as of January 12, 2020, except where otherwise stated. The information contained in financial and operational performance of the Company. These include cost of cultivation, adjusted EBITDA and this presentation is provided by Organigram (“OGI” or the “Co
Slide 3: Q1 2020 Highlights
Q1 2020 Highlights • As guided by management, improved key metrics from Q4 2019: Net revenue grew to $25.2M Gross margin (before FV changes to bio assets and inventories sold) increased to 37% Cash and “all-in” cost of cultivation declined to $0.61 and $0.87 per gram1 of dried flower harvested
Slide 4: Q1 Fiscal 2020 Financial Results
Q1 Fiscal 2020 Financial Results NET REVENUE GROSS MARGIN POSITIVE ADJUSTED NET INCOME (LOSS)3 before FV CHANGES to BIO ASSETS & INVENTORIES SOLD EBITDA1 Q1 2020 net revenue almost Lower Q1 2020 gross margin % • Q1 2020 positive adjusted Q1 2020 net loss of $0.9 million or doubled from Q1 2019 as Q1
Slide 5: Phase 4 Expansion of Moncton Campus
TARGET PRODUCTION CAPACITY1 Phase 4 Expansion 113,000 kg/yr2 of Moncton Campus CURRENT LICENSED DELAYED PHASE 4C COMPLETION DUE CAPACITY TO MARKET • Current licensed production capacity of 89,000kg/yr1, 89,000 kg/yr CONDITIONS with all Phase 4A and Phase 4B rooms licensed • Delayed completion of Pha
Slide 6: Phase 5 - Refurbishment for Edibles and Derivative Products
Phase 5 - Refurbishment for Edibles and Derivative Products • 56,000 square feet within existing Moncton Campus facility being refurbished and designed under EU GMP standards for: • An edibles and derivative production facility; and • Additional extraction capacity (CO2 and hydrocarbon) • Received l
Slide 7: Well-positioned for Edibles and Derivatives
Well-positioned for Edibles and Derivatives Exclusive agreement with The Green Immediate increased extraction capacity from Solution, a proven market leader in Valens GroWorks agreement and Phase 5 the US for consulting services re: product refurbishment underway for additional in- Pre-rolls 7% & ot
Slide 8: Well-positioned for Edibles and Derivatives
Well-positioned for Edibles and Derivatives Initial OGI focus on two largest segments based on US state sales data in the edibles and derivative market - vaporizer pens and edibles, including beverages, representing 23% and 13%, respectively of total US recreational cannabis state sales1 *Tinctures
Slide 9: OGI Vaporizer Pen Portfolio
OGI Vaporizer Pen Portfolio • As planned, began shipping Trailblazer Torch vape cartridges in December 2019 • Selected as one of the Canadian partners for PAX ERA, the premium closed loop vaporizer system created by PAX Labs, Inc. • PAX Labs, Inc. - a leader in the design and development of premium
Slide 10: Premium Cannabis-infused Chocolates
Premium Cannabis-infused Chocolates • ~$15M investment in high-speed, high-capacity, fully- automated production line that includes advanced engineering, robotics, high-speed labeling, automated carton packing • OGI product development and production team has more than deep chocolate expertise • Ins
Slide 11: Proprietary Nano-Emulsification Technology Dissolvable Powder Product
Proprietary Nano-Emulsification Technology Dissolvable Powder Product • Proprietary nano-emulsion technology, developed by internal R&D team • An expected initial absorption of cannabinoids in 10-15 minutes once ingested by adding to a liquid • Anticipated stability to temperature variations, mechan
Slide 12: Liquidity and Capital
Liquidity and Capital • Cash and short-term investments of $34.1M as at end of Q1 Fiscal 2020 • Generated positive adjusted EBITDA of $4.9M1 in Q1 Fiscal 2020 • $30M in undrawn capacity on total term loan of $115M as of January 14, 2019 • A revolver available of up to $25M to be drawn against specif
Slide 13: Appendix
APPENDIX OGI INVESTORS’ PRESENTATION |
Slide 14: Select Key Financial and Operating Metrics
Select Key Financial and Operating Metrics (in 000s) unless indicated Q1 2020 Q1 2019 % CHANGE Gross revenue 28,448 14,479 96% Excise taxes (3,295) (2,040) 62% Net revenue 25,153 12,439 102% Cost of sales 15,811 3,618 337% Gross margin (GM) before FV changes to bio assets & inventories sold 9,342 8,
Slide 15: Select Key Balance Sheet Metrics
Select Key Balance Sheet Metrics (in 000s) Q1 2020 Q4 2019 % CHANGE Cash & Short-Term Investments 33,956 47,555 -29% Biological Assets & Inventories 125,206 113,796 10% Other Current Assets 32,427 34,550 -6% Accounts Payable and Other Current Liabilities 48,972 43,864 12% Working Capital 142,793 152