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1 1 09| 30 | 24 INVESTOR PRESENTATION Q4 Fiscal 2024 NASDAQ (OGI) TSX (OGI)
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2 2 CAUTIONARY STATEMENT This document is current as of December 18, 2024, except where otherwise stated. The information contained in this presentation is provided by Organigram Holdings Inc. (“Organigram” or the “Company”) for informational purposes only and does not constitute an offer to issue or arrange to issue, or the solicitation of an offer to issue, securities of Organigram or other financial products. No part of this presentation shall form the basis or be relied upon in connection with any contract, commitment or investment decisions in relation thereto. The information contained herein is not investment or financial product advice and is not intended to be used as the basis for making an investment decision. No securities commission or similar regulatory authority in Canada or the United States has reviewed this presentation. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. This presentation is not meant to provide a complete or comprehensive analysis of Organigram’s financial or business prospects. To the maximum extent permitted by law, none of Organigram nor its directors, officers, employees or agents, nor any other person accepts any liability, including, without limitation, any liability arising out of fault or negligence, for any loss arising from the use of the information contained in this presentation. This presentation contains forward-looking information. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects”, “estimates”, “intends”, “anticipates”, “believes” or variations of such words and phrases or state that certain actions, events, or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, including but not limited to the anticipated closing of the final tranche of the follow-on investment from the subsidiary of BAT (as defined herein). Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results, events, performance or achievements of Organigram to differ materially from current expectations or future results, performance or achievements expressed or implied by the forward-looking information contained in this presentation, including risk of failure to close any transactions within the timeline expected, or at all, for any reasons. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information include factors and risks as disclosed in the Company’s most recent annual information form, management’s discussion and analysis and other Company documents filed from time to time on SEDAR+ (see www.sedarplus.ca) and filed or furnished to the Securities and Exchange Commission on EDGAR (see www.sec.gov). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this presentation are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur in the disclosed time frames or at all. The forward-looking information included in this presentation is made as of the date of this presentation and the Company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. The descriptions of the terms of the agreements referenced in this presentation are qualified by the terms of the agreements themselves, copies of which shall be filed under Organigram’s profile on SEDAR+ (see www.sedarplus.ca) and filed or furnished to the Securities and Exchange Commission on EDGAR (see www.sec.gov). The financial information in this document contains certain financial performance measures that are not defined by and do not have any standardized meaning under IFRS and are used by management to assess the financial and operational performance of the Company. These include adjusted EBITDA and adjusted gross margin (adjusted gross margin %). The Company believes that these non- IFRS financial measures, in addition to conventional measures prepared in accordance with IFRS, enable investors to evaluate the Company’s operating results, underlying performance and prospects in a similar manner to the Company’s management. As there are no standardized methods of calculating these non-IFRS measures, the Company’s approach may differ from those used by other issuers, and accordingly, the use of these measures may not be directly comparable. The most directly comparable measure to adjusted EBITDA calculated in accordance with IFRS is net income (loss). The most directly comparable measure to adjusted gross margin calculated in accordance with IFRS is gross margin before fair value adjustments. Accordingly, these non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. For further information regarding these non-IFRS measures, including definitions, and a quantitative reconciliation to the most directly comparable IFRS measure, see the information under the heading "Cautionary Statement Regarding Certain Non-IFRS Measures" and the reconciliation to IFRS measures under the heading "Financial Results and Review of Operations" in the Company's management discussion and analysis of financial conditions and results of operations for the year ended September 30, 2024 and the thirteen months ended September 30, 2023 (the "Fiscal 2024 MD&A") incorporated by reference in this presentation and filed under Organigram's profile of SEDAR+ (see www.sedarplus.ca) and filed or furnished to the Securities and Exchange Commission on EDGAR (see www.sec.gov). This presentation does not constitute an offer of shares for sale in the United States or to any person that is, or is acting for the account or benefit of, any U.S. person as defined in Regulation S under the United States Securities Act of 1933, as amended (the “Securities Act”), or in any other jurisdiction in which such an offer would be illegal. Organigram’s shares have not been and will not be registered under the Securities Act. We seek safe harbour. This document may not be reproduced, further distributed or published in whole or in part by any other person. This document may only be disseminated or transmitted into any jurisdiction in compliance with, and subject to, applicable securities laws. Readers are required to ensure their compliance with applicable securities laws. This investor presentation contains information concerning our industry and the markets in which we operate, including our market position and market share, which is based on information from independent third-party sources. Although we believe these sources to be generally reliable, market and industry data is inherently imprecise, subject to interpretation and cannot be verified with complete certainty due to limits on the availability and reliability of raw data, the voluntary nature of the data gathering process, and other limitations and uncertainties inherent in any statistical survey or data collection process. We have not independently verified any third-party information contained herein. All dollar values are in Canadian dollars unless otherwise indicated. References in this presentation to "Fiscal 2024" are to the twelve month period beginning October 1, 2023 and ending September 30, 2024. References to "Fiscal 2023" are to the thirteen month period beginning September 1, 2022 and ending September 30, 2023. References to "Comparative Fiscal 2023" are to the twelve month period beginning October 1, 2022 and ending September 30, 2023. References to "Q4 Fiscal 2024" are to the three month period beginning July 1, 2024 and ending September 30, 2024. References to "Q4 Fiscal 2023" are to the four month period beginning June 1, 2023 and ending September 30, 2023. References to "Comparative Q4 Fiscal 2023" are to the three-month period beginning July 1, 2023 and ending September 30, 2023. Management believes the comparative periods provide readers with more relevant information to better understand the Company's financial performance.
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MONCTON’S FLAGSHIP FACILITY 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 experiences while promoting education and industry advocacy. AN AWARD-WINNING LICENSED PRODUCER OF CANNABIS WITH A PRESENCE ACROSS CANADA AND A GROWING INTERNA TIONAL FOOTPRINT
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4 4 ORGANIGRAM KEY STRENGTHS The overall market leader in Canada with #1 positions in the fastest growing product categories of vapes and pre-rolls and top three positions in every major product category1 1. Source: Hifyre (all provinces other than QC, NB and NS), Weedcrawler (QC), and Board Data (NB, NS, PE), R3M Oct 30 2. Pro-forma cash, including restricted cash, as of the anticipated closing of all tranches of the $124.6M British American Tobacco p.l.c. ("BAT")investment and the Motif Labs Ltd. (“Motif”) transaction Five state-of-the-art specialized facilities including the largest indoor growing operation in Canada Rapidly growing global footprint with eight international supply partners in four countries, U.S. exposure through two strategic investments, and EU exposure through an approximate $21 million investment in German cannabis leader, Sanity Group GmbH ("Sanity Group") Unparalleled innovation with several first-to-market product launches, a Product Development Collaboration ("PDC") with British American T obacco p.l.c. ("BAT"), and recent launch of FASTTM nanoemulsion technology for ingestible products One of the strongest balance sheets among licensed cannabis producers ("LPs") with approximately $120 million in pro-forma cash2 and negligible debt
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5 5 RECREATIONAL MARKET #1 IN CANADA & TOP 3 MARKET SHARE ACROSS ALL MAJOR CATEGORIES See "Cautionary Note Regarding Forward -Looking Statements". Source: HiFyre (L3M, October 2024), WeedCrawler , Provincial Board & Company data FLOWER (including milled) MILLED FLOWER PRE-ROLLS (including IPRs) INFUSED PRE-ROLLS VAPES GUMMIES HASH #1 #3 #1 #1 #2 #1 #3 #1 #1 CONCENTRATES (including hash)
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6 COAST-TO-COAST GEOGRAPHIC STRENGTH Winnipeg Facility London & Aylmer Facilities (Motif) Lac-Supérieur Facility See "Cautionary Note Regarding Forward -Looking Statements". Source: HiFyre (L3M, October 2024), WeedCrawler , Provincial Board & Company data YT BC NT AB SK / MB NU ON QC NL NB PE NS #1 #1 #1 #1 #4 #1 Lac-Supérieur Facility Moncton Facility ATLANTIC CANADA Canada’s Largest Pure Play Cannabis Company By Market Share
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7 BRAND LTM RETAIL SALES(1) LTM $ SHARE(1) DISTRIBUTION $228 million 4.3% (+0.6 pts) 97% $158 million 3.0% (+0.9 pts) 90% PORTFOLIO ANCHORED BY TWO POWERHOUSE BRANDS Source: HiFyre, F24 (Oct – Sept) Retail Sales, Trellis Distribution, October 01, 2024 to October 31, 2024 1. LTM as of 30 -Sep-24.
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8 8 BRAND PORTFOLIO DELIVERS STRONG COVERAGE ACROSS ALL SEGMENTS AND CATEGORIES
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9 Moncton, NB • >85,000+ kg/year of low -cost, high-quality indoor flower • Three-tiered, modular, strain - specific grow rooms provide the ability to control critical environmental requirements by strain • In-house extraction, cannabinoid testing, and remediation • Expecting EU-GMP certification in the near term Lac-Supérieur, QC • Producing hang-dried, hand- trimmed, artisanal cannabis • Producing multiple hash products, including the patent - pending Rip-Strip Hash • Hash production capacity of 2 million units per year • 2,400kg / year of premium flower capacity FIVE STATE-OF-THE-ART FACILITIES STRATEGICALLY LOCATED ACROSS THE COUNTRY Winnipeg, MB • Edibles facility with automated cutting-edge equipment with monthly capacity of up to 4 million gummies • Designed to produce nutraceutical-grade cannabis edibles • Producing newly launched Edison Sonics gummies with patent-pending FAST (Fast Acting Soluble Technology) nanoemulsion technology (faster onset and strong bioavailability) Aylmer, ON • Leverage Aylmer best -in-class capabilities to centralize manufacturing: • Hydrocarbon & CO2 extraction • Refining, formulation, post - processing of minor cannabinoids • Infused and regular pre -rolls • Provides lower cost ingredient supply to Organigram's existing business London, ON • Centralized distribution hub to support growing demand and optimize fulfillment, reducing the cost and complexity of shipping from NB • Beneficial to support the increasing number of SKUs being brought to market via the Ontario Cannabis Store flow through model Recently-acquired Motif operations are distributed across two facilities in Aylmer and London, Ontario Canada’s largest indoor cultivation facility and home to the product development collaboration (PDC) with BAT
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10 10 0 20 40 60 80 100 120 140 160 180 200 Q1 F22 Q2 F22 Q3 F22 Q4 F22 Q1 F23 Q2 F23 Q3 F23 Q4 F23 Q1 F24 Q2 F24 Q3 F24 Q4 F24 Yield Per Plant (grams) 2024 EFFICIENCY HIGHLIGHTS CONTINUOUS EFFICIENCY IMPROVEMENTS • Realized $9.1 million in annualized cost savings and identified additional savings in early Fiscal 2025 • Achieved record yields for last two consecutive quarters due to cultivation improvements and strategic investment in seed-based technology • Trend of higher THC flower potency • Achieved 9% of cannabis harvest from seeds in Q4 Fiscal 2024 and 22% by the end of calendar 2024, contributing to a reduction in cultivation costs and increased cultivation capacity. • Converted two vegetation rooms to flower in Moncton due to extra capacity from seeds which will provide additional flower • Harvested 23.3K kg of flower in Q4 Fiscal 2024, a 10% year-over-year increase • Produced 41.5 million gummies in Fiscal 2024 • Produced 1.1 million units of hash in Fiscal 2024, versus 0.7 million in Fiscal 2023 • Produced over 55 million joints in Fiscal 2024 Avg: 131 Avg: 158 Avg: 175
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11 11 FOCUSED ON GLOBAL EXPANSION • Capital raised in Fiscal 2024: • $124.6 million follow-on investment from BAT to establish the $83.1 million Jupiter investment pool to fund international and strategic growth initiatives1 • $28 million oversubscribed underwritten offering • Eight export partners in Australia, Germany, Israel, & UK • EU-GMP audit conducted in November 2024 and awaiting certification results • Organigram has U.S. exposure through two strategic investments in Phylos Bioscience Inc. ("Phylos") and Steady State LLC (d/b/a Open Book Extracts)("OBX") • In June 2024, Organigram announced an approximate $21 million investment in Sanity Group to establish a foothold in the European market and to accelerate sales into the rapidly growing German market Organigram is deploying capital to establish a larger global presence while focusing on growing and diversifying its international revenue 1. As of the close of the final BAT follow -on investment tranche $1.0 $2.2 $2.4 $4.1 Q1 F24 Q2 F24 Q3 F24 Q4 F24 F’24 International Sales
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12 12 ORGANIGRAM’S GLOBAL FOOTPRINT
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13 13 BAT INVESTMENTS IN ORGANIGRAM March 2021 - $221 million strategic investment from subsidiary of BAT for 19.9% equity interest1 in Organigram • Established the Product Development Collaboration ("PDC") with formation of a Center of Excellence ("CoE") at Moncton campus • Focused on developing the next generation of cannabis products, IP and technologies November 2023 - Up to $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 private placement at $3.22 per share2 • Creation of strategic investment pool named Jupiter, fundedwith $83.1 million over the course of the three tranches of the investment • Jupiter will target investments in emerging cannabis opportunities that enable Organigram to apply industry-leading capabilities to new markets • $41.5 million proceeds for general corporate purposes • First and second $41.5 million tranches closed • Final $41.5 million tranche expected to close in February 2025 1. Calculated on a non -diluted basis. 2. On the last trading day pre -announcement (November 3, 2023) of the transaction. Organigram shares closed at C$1.59/share on the Toronto Stock Exchange. Product Development Collaboration Jupiter Strategic Investment Pool
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14 14 PRODUCT DEVELOPMENT COLLABORATION Innovation Highlights • Organigram has unveiled the results of what is believed to be the largest pharmacokinetic (PK) study focused on recreational cannabis products.The results of the study have confirmed: 1. Faster onset compared to traditional ingestible products from the control group. Depending on ingestible format, up to ~50% faster onset of the effects of cannabis was observed. 2. Improved bioavailability of cannabinoids: nearly double the cannabinoid delivery at peak compared to the control group. 3. More predictable duration of the effects of cannabis showing promising signals for the development of future offset claims, subject to additional supporting studies. • Nanoemulsion gummies were launched in December 2024. • The PDC continues to focus on the development of next generation products, adhering to the highest regulatory and compliance standards. FAST Nanoemulsion technology for ingestible products is the first patent -pending innovation to be commercialized leveraging the output of the PDC
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15 15 JUPITER INVESTMENT POOL Priority Investment Pillars The $83.1 million Jupiter investment pool targets investments in emerging cannabis opportunities • All potential investments are made in alignment with Organigram’s strategic vision for the future, focusing on long-term sustainable growth and global cannabis leadership • T argeting investments that will enable Organigram to apply its industry- leading capabilities to new markets • Jupiter is managed by an internal team at Organigram • Internal team is focused on sourcing future investments, enabling both an entrepreneurial approach and application of best-in-class knowledge • All investments go through legal due diligence, ensuring compliance with both applicable laws and Organigram's listings on the NASDAQ & TSX • Jupiter has deployed capital to two strategic targets:US$2 million in OBX, and an approximate $21 million interest in Sanity Group Sectors • U.S. regulated market and hemp - derived market Geographies • U.S. • Emerging global markets Categories & Tech • Non-combustible inhalation • Edibles • Beverages Value Chain Segments • Distribution • IP
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1616 STRATEGIC INVESTMENTS
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17 ESTABLISHED FOOTHOLD IN EUROPEAN MARKET • In June 2024, Organigram made its second Jupiter investment into Germany- based Sanity Group, agreeing to investan approximate $21 million • Concurrent to the investment, Organigram and Sanity Groupentered into a new supply agreement to include significantly higher volumes and the intention to work together on the commercialization of Organigram’s brands and intellectual property (IP) in Germany • Sanity Group is a leader in the German cannabis market • Once Organigram receives EU-GMP certification in Moncton, Sanity Group will shift its annual purchase commitment from Organigram to a percentage of its overall assortment of flower offerings for the European market. Organigram expects to complete its final EU-GMP audit before the end of the calendar year • Sanity Group is currently participating in a Swiss recreational cannabis pilot program, with two stores operational and a plan to expand its retail footprint in Switzerland
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18 INVESTMENT IN U.S. HEMP- DERIVED CANNABINOIDS • In March 2024, Organigram made its first Jupiter investment into U.S.-based OBX as a convertible note for USD$2 million • The investment in OBX provides a further footprint in the U.S., which was a strategic priority set out in the Jupiter investment strategy • Through its investment in OBX, Organigram will gain valuable insights into the U.S. market and its consumers • OBX and Organigram are currently discussing an opportunity for OBX to serve as a collaborative research partner for efficacy testing and formulation sciences • OBX is nearing completion of its EU GMP certification, which may create further international collaboration opportunities between OBX and Organigram
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19 INVESTMENT IN SEED GENETICS & THCV • In May of 2023, Organigram made its first investment into the U.S. cannabis marketby issuing a strategic convertible loan of up to USD$8 million to Phylosin three tranches • Phylos has enabled Organigram to launchproducts containing whole-flower THCV • Organigram will significantly reduce operating costs by transitioning its flower production from cloning toseed which reduces the need forpropagation and pre-vegetation • In Q1 Fiscal 2024, Organigram advanced the second tranche of USD$2.75 million to Phylos for a total current investment of USD$6.0 million in senior secured convertible loans • First three seed-based rooms harvested in Q3 Fiscal 2024 with four additional rooms harvested in July 2024, moving toward goal of approximately 30% seed-based production by end of calendar 2024 • In July 2024, Organigram advanced USD$1 million of the final USD$2 million investment tranche to Phylos with the remaining portion to be funded upon completion of newly expanded milestones
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20 INVESTMENT IN DISRUPTIVE VAPING TECHNOLOGY • In March of 2023, Organigram invested $5.5 million into Green T ank T echnologies Corp. ("Greentank"), a vape R&D firm and hardware manufacturer • Greentank's heating technology is the first meaningful innovation in the vape space in almost a decade • More consistent flavour, reduce clogging and produce smaller particle size which may increase potency • T est launch completed in Q2 Fiscal 2024. Full market launch of all-in-one device expected in Q3 Fiscal 2025 in concert with the integrated Motif vape portfolio • 18-month exclusivity period to begin upon commercial launch
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2121 QUARTERLY UPDATES & HIGHLIGHTS Q4 F2024
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22 A LEADING CANADIAN LP 1. As of September 30, 2024 – Multiple Sources (Hifyre, Weedcrawler , provincial boards, internal modelling). 2. Source: Hifyre (all provinces other than QC, NB and NS), Weedcrawler (QC), and Board Data (NB, NS, PE), R3M Oct 30 22 • Organigram held the #2 national market share position as of the end of Q4 Fiscal 20241 • Subsequent to quarter-end, Organigram acquired Motif to become the #1 LP in Canada by market share2 • Organigram is currently #1 in vapes, pre-rolls, hash & concentrates, and milled flower, and has a top 3 market share position in every major product category2
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Q4 & F2024 HIGHLIGHTS 1. Adjusted EBITDA is a non-IFRS Financial Measure not defined by and does not have any standardized meaning under IFRS and might not be comparable to similar financial measures disclosed by other issuers; please refer to the cautionary statement at the beginning of this docu ment and the Company’s Fiscal 2024 MD&A for definitions and a reconciliation to IFRS. 2. Adjusted gross margin is a non-IFRS financial measure not defined by and does not have any standardized meaning under IFRS; p lease refer to “Non-IFRS Financial Measures” in this press release for more information. 3. As of September 30, 2024 - Multiple sources (Hifyre, Weedcrawler, OCS wholesale sales and e-commerce orders shipped data, provincial boards data and internal sales data) 4. Source: Hifyre (all provinces other than QC, NB and NS), Weedcrawler (QC), and Board Data (NB, NS, PE), R3M Oct 30 • Fiscal 2024 adjusted EBITDA1 increased 55%, compared to Comparative Fiscal 2023. • Q4 Fiscal 2024 net revenue increased 10% compared to Q3 Fiscal 2024 and 22%, compared to the Comparative Q4 Fiscal 2023. • Q4 adjusted EBITDA1 increased 69% sequentially and reached 13% of net revenue • Adjusted gross margin2 of 37% due to efficiency increases across cultivation, manufacturing, and distribution. • Moved from the #2 spot in the Canadian market as of year-end3 to the #1 LP by market share post- acquisition of Motif, subsequent to quarter-end4. • Realized $9.1 million in annualized savings from expansive efficiency initiatives in Fiscal 2024. • Achieved 9% of cannabis harvest from seeds in Q4 Fiscal 2024 and 22% by the end of calendar 2024, contributing to a reduction in cultivation costs and increased cultivation capacity. The Company expects to further leverage lower-cost seed-based technology by targeting approximately 20% of harvests from seeds in Fiscal 2025, with monthly fluctuations between 15% and 30% depending on the cultivar requirements • Achieved sequential quarterly growth in international sales throughout Fiscal 2024 and increased international customer base from five to eight supply partners compared to Fiscal 2023. • Completed $21 million strategic investment in German cannabis leader Sanity Group, and expanded strategic investments in the U.S., leveraging dedicated Jupiter investment pool. • EU-GMP audit was completed at the Company's Moncton facility in November 2024 and awaiting certification, which is expectedto support growing demand from international markets and contribute to increases in international revenue and strong margins. • In Fiscal 2024, the Company enhanced its balance sheet by closing two tranches of the $124.6 million follow-on BAT investment for gross proceeds of $83 million, with the final $41.5 million tranche expected to close in February, 2025. In addition, the Company closed a separate $28 million overnight marketed offering in April, 2024.
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24 24 QUARTERLY REVENUE & ADJUSTED GROSS MARGIN1 $32.8 $36.7 $36.5 $37.6 $41.1 $44.7 $48.4 $56.2 $56.3 $57.4 $63.6 $69.9 $6.1 $7.2 $11.2 $11.6 $14.6 $16.5 19% 20% 31% 31% 36% 37% Q3 F23 Q4 F23 Q1 F24 Q2 F24 Q3 F24 Q4 F24 Net Revenue Gross Revenue Adj. Gross Margin Adj. Gross Margin % $ millions 1. Adjusted gross margin is a non-IFRS financial measure not defined by and does not have any standardized meaning under IFRS; please refer to “Non-IFRS Financial Measures” in the cautionary statement at the beginning of this document and the Company's Fiscal 2024 MD&A for definitions and reconciliation to IFRS.. 2 Consistent improvement in gross margin and rate 2. Q4 F2023 is presented as the unaudited three-month period from July 1, 2023-September 30, 2023
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-$2.9 $0.1 $0.1 -$1.0 $3.5 $5.9 Q3 F23 Q4 F23 Q1 F24 Q2 F24 Q3 F24 Q4 F24 $ millions 1. Adjusted EBITDA is a non -IFRS Financial Measure not defined by and does not have any standardized meaning under IFRS and might not be comparable to similar financial measures disclosed by other issuers; please refer to the cautionary statement at the beginning of this document and the Company’s Fiscal 2024 MD&A for definitions and a reconciliation to IFRS. ADJUSTED EBITDA1 2 Improving adjusted EBITDA 2. Q4 F2023 is presented as the unaudited and unreviewed three- month period from July 1, 2023- September 30, 2023
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STRONG BALANCE SHEET AND LIQUIDITY • On September 30, 2024, the Company hadcash of $133.4 million (including restricted cash) • In December 2024, the Company completed its acquisition of Motif, reducing its cash position by the cash consideration of the Motif transaction of $50 million and approximately $5 million in transaction costs • Pro-forma cash position of approximately $120 million, including restricted cash, upon the anticipated closure of the final tranche of the follow-on investment from BAT and Motif transaction • Negligible debt(less than $0.1 million)
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27 27 Q4 FISCAL 2024 KEY FINANCIAL METRICS 1. Adjusted gross margin, adjusted gross margin % and adjusted EBITDA are non -IFRS financial measures not defined by and do not hav e any standardized meaning under IFRS and might not be comparable to similar financial measures disclosed by other issuers; please refer to the cautionary statement at the beginning of this document and the Company’s Q3 Fiscal 2024 MD&A for definitions and a reconcilia tion to IFRS. In $000s unless otherwise indicated KEY FINANCIAL METRICS Q4'24 Comparative Q4’232 % Change Gross revenue 68,877 56,179 24% Excise taxes (25,179) (19,481) 29% Net revenue 44,698 36,698 22% Cost of sales 30,907 34,321 (10)% Gross margin before fair value changes to biological assets & inventories sold 13,791 2,377 480% Realized fair value on inventories sold and other inventory charges (15,365) (15,901) (3)% Unrealized gain on changes in fair value of biological assets 18,790 21,751 (14)% Gross margin 17,216 8,227 109% Adjusted gross margin1 16,543 7,161 131% Adjusted gross margin %1 37% 20% 85% Selling (including marketing), general & administrative expenses 14,300 15,787 (9)% Adjusted EBITDA1 5,860 58 10,003% Net income (loss) (5,433) (26,595) (109)% Net cash provided by (used in) operating activities 8,893 (8,469) (205)% 2. Q4 F2023 is presented as the unaudited and unreviewed three-month period from July 1, 2023-September 30, 2023
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28 28 Q4 FISCAL 2024 SELECT BALANCE SHEET METRICS SELECT BALANCE SHEET METRICS September 30, 2024 September 30, 2023 % Change Cash & short-term investments (excluding restricted cash) 133,426 51,757 158% Biological assets & inventories 82,524 80,953 2% Other current assets 86,996 49,596 75% Accounts payable & accrued liabilities 47,097 20,007 135% Working capital 208,897 133,545 55% Property, plant & equipment 96,231 99,046 (3%) Long-term debt 25 79 (68%) Total assets 407,860 298,455 37% Total liabilities 101,871 26,832 280% Shareholders’ equity 305,989 271,623 13% In $000s unless otherwise indicated
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29 13% 27% 9% 51% Organigram Pro Forma Ownership Common Shares Issued & Contingent Shares (if issued) to Motif Shareholders Common Shares Held by BAT Preferred Shares Held by BAT Common Shares Held by Others Pro Forma Key Financials Organigram Pre-Motif Acquisition Organigram Pro Forma Motif Acquisition Organigram Pro Forma BAT Final Tranche of Follow-on Investment Basic Common Shares Outstanding 108.9 million(1) 129.3 million(4) 137.0 million(6) Preferred Shares Outstanding 8.5 million(2) 8.5 million(2) 13.6 million(7) Cash, Restricted Cash & Cash Equivalents $133.4 million(3) $78.4 million(5) $119.9 million(8) Debt (Q4-F24) $0.025 million $0.025 million $0.025 million SIMPLIFIED PRO FORMA CAPITALIZATION Note: Analysis assumes contingent consideration is issued to Motif shareholders at a time post -close of the final tranche of the follow-on investment from BAT. 1. 108,915,018 Common Shares outstanding as at November 29, 2024, comprised of 103,801,351 Common Shares outstanding at June 30, 2024, 683,927 common shares issued in relation to share -based compensation, and 4,429,740 shares issued from BAT Jupiter Private P lacement Tranche 2 that closed on August 30, 2024. Dilutive securities as of November 29, 2024 are comprised of 2,687,811 options, 4,450,500 war rants, 4,568,523 restricted share units, and 2,877,712 performance share units. 2. Preferred Shares are not listed but are convertible into Common Shares on a 1 -to-1 basis and consist of 8,463,435 shares outstan ding as at November 29, 2024. 3. Consists of Cash & Cash Equivalents of $125.3 million and restricted cash of $8.2 million reported at September 30, 2024. 4. Existing Common Shares plus 17,233,951 Common Shares issued on close of the Motif transaction (based on the 30 -day VWAP of $2.32 10 as of December 4, 2024) plus 3,105,291 Common Shares issued as contingent consideration to Motif shareholders. 5. Includes deduction of $50 million in cash Consideration paid to Motif shareholders plus deduction of estimated $5 million of transaction costs. 6. Existing Common Shares plus an estimated 7,760,000 Common Shares to be issued on close of the final tranche of the follow -on investment from BAT on or around February 28, 2025. 7. Estimated Preferred Shares outstanding of 13,596,610 comprised of 8,463,435 opening plus 5,133,175 estimated to be issued on close of the final tranche of the follow -on investment from BAT. 8. Cumulative gross proceeds of $41.5 million related to the issuance of Common and Preferred Shares to BAT as part of the final tranche of the follow -on investment from BAT closing on or around February 28, 2025. 9. Pro forma all transactions shown. 1 2 3 BAT Pro Forma Ownership of 36% (9)
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30 30 Q4 FISCAL 2024 CAPITAL STRUCTURE in $000s September 30, 2024 Sept 30, 2023 Long-term debt 25 79 Shareholders’ equity 305,989 271,623 Total debt and shareholders’ equity 306,014 271,702 in 000s Outstanding common shares 108,585 103,801 Options 2,691 2,830 Warrants 4,236 4,236 Top-up rights 7,079 2,035 Restricted share units 2,974 881 Performance share units 1,117 261 Total fully-diluted shares 126,682 114,044
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31 A CANADIAN CANNABIS LEADER NASDAQ (OGI) TSX (OGI)