Organigram Global Inc. · TSX:OGI
Organigram Global — Investor Presentation (November 2023)
20 slides from Organigram Global's investor presentation, Nov 6, 2023
Slide 1: BAT Private Placement & Creation of "Jupiter" Strategic Investment Pool
BAT PRIVATE PLACEMENT & CREATION OF "JUPITER” STRATEGIC INVESTMENT POOL NASDAQ (OGI) TSX (OGI) 11 | 6 | 2023 1
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT This document is current as of November 5, 2023, except where Organigram to differ materially from current expectations or future under Organigram’s profile on SEDAR+ (see www.sedarplus.ca) and otherwise stated. The information contained in this presentation is results, performa
Slide 3: About Organigram
ABOUT ORGANIGRAM 3
Slide 4: Who We Are
WHO WE ARE Founded in 2013, we are an award-winning cannabis licensed producer with operations spread across Canada Our Vision: To be a respected global leader in the emerging cannabis movement Our Mission: To delight consumers with trusted brands that deliver innovative cannabis products and experi
Slide 5: Our Strategy
OUR STRATEGY INNOVATION CONSUMER EFFICIENCY EXPANSION FOCUS Leverage our brands, product portfolio and culture of innovation to: Increase market Drive Deliver long-term Reach share profitability shareholder value new markets 5
Slide 6: State of the Art Facilities
STATE OF THE ART FACILITIES Organigram's legacy of execution excellence & stability is established in the Canadian market, supported by three fully-scaled, state-of-the-art facilities: Moncton Winnipeg Lac-Supérieur • 51,000 sq. ft. edibles facility with • Producing hang-dried, hand-trimmed, • One o
Slide 7: Domestic & International Expansion
DOMESTIC & INTERNATIONAL EXPANSION Organigram continues to grow domestic market share in key categories and over-indexes in international sales as a proportion of Canadian exports: Canadian Market Rest of World • #2 market share position in Canada1 • In FY2023 Organigram shipped an estimated 10% of
Slide 8: Strategic Investments in Innovation
STRATEGIC INVESTMENTS IN INNOVATION Organigram has a track-record of first-to-market innovations and is positioned to realize defensible competitive advantages from investments in technology Growing Portfolio of First-to-market Successes Competitive Technologies • Milled flower with custom flavour b
Slide 9: Operational Excellence & Disciplined Capital Stewardship
OPERATIONAL EXCELLENCE & DISCIPLINED CAPITAL STEWARDSHIP Organigram's focus on accretive capital deployment maintains strategic flexibility and financial liquidity Successful M&A Integrations Financial Performance & Strong Balance Sheet • Negligible debt (less than C$0.2 million) • Cash and short-te
Slide 10: Product Development Collaboration
PRODUCT DEVELOPMENT COLLABORATION Organigram and BAT contributing complimentary capabilities and sharing a commitment to responsible category stewardship. The PDC continues to focus on the development of next generation products, adhering to the highest regulatory and compliance standards. Collabora
Slide 11: The Transaction
THE TRANSACTION 11
Slide 12: Transaction
TRANSACTION Highlights • C$124.6 million follow-on investment from subsidiary of BAT in three equal tranches between January 2024 and February 2025 for: • 45.0% economic interest in Organigram (accreting to maximum of 49.0%) • Voting interest capped at 30.0% with maximum 30.0% Board rights • Private
Slide 13: Jupiter Strategic Rationale
JUPITER STRATEGIC RATIONALE The current market conditions are optimal for the Jupiter “ investment approach The time is right, and ✓ Emerging cannabis legalization trends at a global level, as well as a rapidly growing Organigram is well adult consumer base positioned to capitalize on ✓ A large prop
Slide 14: Jupiter Investment Approach
JUPITER INVESTMENT APPROACH Priority Investment Pillars Jupiter will target investments in emerging cannabis opportunities 1 Geographies • USA • Emerging global markets • All potential investments will be made against Organigram’s strategic vision for the future, focusing on long-term sustainable gr
Slide 15: Investment Terms
INVESTMENT TERMS • Subject to requisite Organigram shareholder approval, regulatory approvals and other conditions, subsidiary of BAT to subscribe for, in aggregate, ~38.7 million shares of Organigram, over three tranches, at C$3.2203/share. • Total gross proceeds to Organigram of C$124.6 million •
Slide 16: Governance and Deal Protections
GOVERNANCE AND DEAL PROTECTIONS Board Representation • Under the Amended and Restated IRA, BAT would be eligible to appoint up to 30% of the Board. Investor Rights • BAT has a right to participate in equity issuances to maintain its percentage shareholding, subject to customary exceptions, and perio
Slide 17: Pro Forma Capitalization and Ownership
PRO FORMA CAPITALIZATION AND OWNERSHIP Shares and Cash Balances Denoted in Millions Tranche 1 Tranche 2 Tranche 3 Common (1) Shares % 31-Oct-23 ~16-Jan-24 ~30-Aug-24 ~28-Feb-25 Pro-Forma Total % Share % Organigram Shares Outstanding Common Shares Non BAT 81.2% 65.9 - - - 65.9 54.8% 70.0% BAT 18.8% 1
Slide 18: Indicative Timeline
INDICATIVE TIMELINE November 6, December January 15, January 16, August 30, February 28, 2023 20, 2023 2024 2024 2024 2025 Investment Shareholder Shareholder Target Tranche Target Tranche Target Tranche Announced Circular Vote 1 Close* 2 Close* 3 Close* Press release Proposed transaction contemplate
Slide 19: Appendix - Detailed Financial Figures
APPENDIX 1 - DETAILED FINANCIAL FIGURES 19
Slide 20: Detailed Financial Figures on Transaction
DETAILED FINANCIAL FIGURES ON TRANSACTION As at October 31, 2023 Cash & Short-Term Investments $ 74,823,000 BAT Common Share Shareholding in Organigram (October 31, 2023) 15,249,027 18.8% (As Reported at May 31, 2023) All Other Organigram Shareholders 65,912,603 81.2% Organigram Total Shares (Basic)
Organigram Global — Investor Presentation (November 2023) on 6ix