OGI News & Events

Sees FY26 adjusted EBITDA higher than FY25 and CapEx of less than $10M.

Reports Q2 adjusted EBITDA $870K vs. $4.91 M last year. Reports Q2 gross revenue $93.3M. "Q2 reflected our underperformance in vapes and temporary challenges in infused pre-roll production, compounded by slower industry growth," said James Yamanaka, CEO. "We acted quickly to address these issues, and the operational changes and product enhancements we have implemented are already beginning to stabilize performance. Combined with continued improvements in yields and flower potency, and the contribution from Sanity Group beginning in Q3, we believe the business is positioned for stronger execution and improved performance in the second half of fiscal 2026." "The financial impact of the competitive and operational challenges encountered earlier in Fiscal 2026 is believed to have been largely realized in the first half of the year, and we are now beginning to see performance stabilize," said CFO Greg Guyatt. "While margins and profitability were pressured during the quarter, the underlying cost structure of the business continues to improve, supported by higher yields, operational efficiencies, and prior investments in automation. We expect to resume our trajectory of margin expansion and profitability improvement through the second half of the year, supported by expected growth in net revenue and international sales, alongside positive contributions from the consolidation of Sanity Group."

Organigram Global and Sanity Group jointly announced the successful closing of Organigram's previously announced acquisition of Sanity Group, pursuant to the terms of a share purchase agreement dated February 18, 2026. In connection with closing of the Acquisition, a wholly owned subsidiary of the company acquired all of the issued and outstanding shares of Sanity Group not already owned by the company for an upfront purchase price paid on closing of EUR 107.3M, consisting of EUR 78M in cash and EUR 29.3M in share consideration. In connection with the closing of the Acquisition, the company also closed its previously announced private placement financing with BT DE Investments, a wholly owned subsidiary of British American Tobacco p.l.c.1, for total gross proceeds of EUR 40.3M, and its previously announced senior secured credit facilities of up to C$60M. A portion of the cash component of the Upfront Consideration payable in connection with the Acquisition was funded using an amount drawn from Organigram's Jupiter strategic investment pool, a capital pool established in 2024 with funding from BAT to support international growth initiatives. The use of such funds in connection with the Acquisition represents the final deployment of the Jupiter Pool.

Organigram is pleased to announce that Institutional Shareholder Services has recommended that holders of common shares of Organigram vote FOR the ordinary resolution to approve the indirect acquisition of Sanity Group GmbH at the company's Annual General and Special Meeting of Shareholders to be held on Monday, March 30, 2026, at 10:00 a.m, at 333 Bay Street, Suite 3400, Toronto, Ontario.