Page 1

• • • • Organigram Reports First Quarter Fiscal 2021 Results Q1 2021 Canadian adult - use recreational gross and net revenue grew 42 % and 30 % , respectively , to $ 22.5 million and $ 16.8 million , respectively , from Q1 2020 Q1 2021 Canadian adult - use recreational gross and net revenue grew sequentially 14 % and 11 % , respectively , from Q4 2020 Generated positive cash flow from operations of $ 0.3 million in Q1 2021 , representing the second quarter of the last three quarters with positive cash flow from operations Ended the quarter with $ 134 million¹ in cash and short - term investments ; on December 1 , 2020 , made a $ 55 million repayment on term loan , resulting in pro- forma cash and short - term investments of $ 79 million¹ with $ 60 million owing on its term loan Subsequent to quarter - end , began increasing production and using additional existing capacity to meet increased consumer demand and capture more sales opportunities and economies of scale in the future Launched 53 new stock - keeping units ( SKUs ) since July 2020 as part of the Company's product portfolio revitalization , including three new higher margin Edison dried flower strains ; up to 14 more SKUs still expected to launch by the end of Q2 Fiscal 2021 SHRED was the # 1 most - searched brand on the Ontario Cannabis Store website for the months of November and December 2020 and Edison was among the most- searched brands in November 2020 On January 11 , 2021 , announced the appointment of Marni Wieshofer , formerly the CFO and EVP , Corporate Development at Lions Gate Entertainment Company , to the Company's Board of Directors , Organigram's first U.S. domiciled Board member with deep experience in U.S. and international M & A MONCTON , New Brunswick -- ( BUSINESS WIRE ) -- January 12 , 2021 -- Organigram Holdings Inc. ( NASDAQ : OGI ) ( TSX : OGI ) , the parent company of Organigram Inc. ( together , the " Company " or " Organigram ” ) , a leading licensed producer of cannabis , announced its results for the first quarter ended November 30 , 2020 ( " Q1 Fiscal 2021 " or " Q1 2021 " ) . Select Key Financial Metrics ( in $ 000s ) unless otherwise indicated Gross revenue Excise taxes Net revenue Cost of sales Q1 2021 Q1 2020 % Change Gross margin before fair value changes to biological assets & inventories sold ( 3,842 ) 9,342 Fair value changes to biological assets & inventories sold Gross margin 47 % -141 % ( 12,832 ) 1,852 -793 % | ( 16,674 ) 11,194 -249 % 25,280 28,448 -11 % ( 5,949 ) ( 3,295 ) 81 % 19,331 25,153 -23 % 23,173 15,811 Adjusted gross margin¹ 1,948 10,187 -81 % Adjusted gross margin % ¹ 10 % 41 % -30 % SG & A² 11,120 9,418 18 % Adjusted EBITDA¹ Net loss ( 6,387 ) 5,712 -212 % ( 34,336 ) ( 863 ) Net cash provided by ( used in ) operating activities 294 ( 26,868 ) nm³ -101 %