ORGANIGRAM GLOBAL INC. Annual Report - How They Did This Year

This past year, Organigram Global Inc. ("Organigram") made notable moves to grow its business and expand its reach, especially during the fiscal year that ended on September 30, 2025 (Fiscal 2025).

Major Business Developments

Organigram was busy with acquisitions, bringing new players into the family:

• Organic Inc.: Right at the start of the fiscal year ending September 30, 2024 (October 1, 2023), Organigram acquired Organic Inc., expanding its product range.
• Motif Labs Ltd.: During Fiscal 2025, specifically on April 1, 2025, Organigram acquired Motif Labs Ltd., bringing new products or capabilities, especially in the extracts market.
• Collective Project Limited (CPL): Shortly after Fiscal 2025 ended, on October 1, 2025, Organigram also acquired Collective Project Limited (CPL). This acquisition is key to their expansion into the U.S. market with hemp-derived THC beverages and edibles, including the launch of their "happly" brand. This shows the company's continued strategy for growth and expansion into the new fiscal year.

Beyond acquisitions, Organigram also strengthened its partnership with British American Tobacco (BAT), its largest institutional shareholder. BAT made a significant follow-on investment of $124.6 million into Organigram. This partnership also created the "Jupiter Pool" to fund international growth opportunities, with initial investments in companies like Open Book Extracts (OBX) in the U.S. and Sanity Group in Germany.

How They're Doing

Organigram had a strong year, especially in Canada:

• Top Spot in Canada: As of the end of Fiscal 2025, Organigram proudly held the #1 market share position in the Canadian recreational cannabis market! That's a big achievement.
• International Growth: They saw significantly higher international sales in Fiscal 2025 compared to the previous year (Fiscal 2024).
• Efficiency Gains: The company also made good progress in making its production, manufacturing, and logistics more efficient, with a clear focus on improving production capacity, THC content, costs, and yields, as outlined in their official outlook.

Organigram operates five key facilities across Canada, each playing a vital role:

• Moncton Campus: Their main hub, over 500,000 square feet, handles cultivation, extraction, testing, and automated production. They've invested in cost-effective seed-based production for better efficiency.
• Winnipeg Facility: A specialized 51,000 square-foot facility for ingestible products, capable of making up to 48 million gummies annually. They've also got a new beverage line that can produce 2.6 million cans a year, though it's not fully running yet. This facility also uses their special FASTTM nanoemulsion technology for some ingestible products.
• Lac-Supérieur Facility: A greenhouse in Quebec focused on premium flower (2,400 kg annually) and hash/concentrates (over 2 million packaged units annually).
• Aylmer Facility: Handles advanced extraction and manufacturing, including pre-roll production.
• London Facility: A central warehouse and distribution hub in Ontario, helping them efficiently get products to Central and Western Canada.

What They're Focusing On (Their Strategy)

Organigram's strategy is all about growing the business and creating value for shareholders by focusing on:

• Innovation: They're big on creating new and unique products, especially branded and derivative-based products. Their partnership with BAT includes a "Centre of Excellence" at their Moncton Campus for cannabis research. Organigram gets a worldwide, royalty-free license to all the new ideas developed there, exclusively in Canada and non-exclusively internationally. They are also closely watching changes in legislation that could allow for new cannabis types, forms, and potencies, which will shape their future product offerings.
• Consumer Focus: They keep a diverse range of brands and products with competitive prices, always watching what consumers want.
• Efficiency: They're constantly working to reduce costs and improve how they operate through automation, better cultivation methods (like seed-based growing), and smarter logistics.
• Market Expansion: This includes growing within Canada (like their recent acquisitions), expanding international exports (shipping bulk cannabis to places like Germany, Australia, and the UK), and entering the U.S. market with hemp-derived products.

Looking Ahead (Future Outlook & Risks)

Organigram is optimistic about the cannabis industry's future, both in Canada and globally.

• Growing Market: Canadian recreational cannabis sales are expected to reach $6.4 billion by 2028. The Canadian market is also stabilizing after a period of oversupply.
• Product Trends: Consumers continue to prefer high-THC, value-for-money flower, and infused pre-rolls are growing fast.
• Future Growth: Organigram expects to keep growing its revenue through new product innovations, improving cannabis quality, and expanding its FASTTM technology. They're also looking for more international acquisition opportunities to boost their global sales.

However, there's a notable risk on the horizon:

• U.S. Hemp Legislation: In November 2025, the U.S. passed a law that could change the definition of hemp, potentially eliminating hemp-derived THC products. This change wouldn't take effect for 365 days, meaning by November 2026, Organigram's U.S. hemp-derived THC offerings and investments could be directly impacted. While efforts are underway to change or delay this, if the law isn't amended, Organigram might have to sell off or restructure its U.S. hemp THC business.