Organigram Holdings Inc. (OGI), listed on the NASDAQ and the TSX, and Phylos Bioscience Inc. have entered into a comprehensive technical and business partnership in Canada. The aim of this collaboration is to further advance Organigram’s cultivation activities in Canada with genetics and patent-pending fundamental technology. In addition, the partnership with Phylos Bioscience Inc. will enable Organigram, subject to required authorizations and permits, to market THCV products to approved international markets.
Delta 9-Tetrahydrocannabivarin (THCV)
THCV is a low-intoxicant cannabinoid that provides an unusual user experience with an encouraging and concentrated impact. In contrast to THC, this minor cannabinoid has been shown to have high potential as an appetite suppressant and little to no cognitive impairment. Phylos Bioscience Inc. has developed and continues to develop proprietary THCV genetics with various THC: THCV ratios.
Production-Ready Seeds
F1 Hybrid Phylos Production-Ready Seed enables direct sowing of cannabis seeds compared to today’s clone-based production. By utilizing seed-based production, Organigram expects to benefit from decreased labor costs while using its current facilities for clone production.
Strategic Rationale and Opportunities
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Organigram, according to the company, will be the first Canadian-based licensed producer to offer whole plant-derived THCV in Canada using Phylos’ genetic technology;
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With seed-based production at scale, Organigram may modernize cannabis production;
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Organigram hopes to create seed-based F1 hybrid genetics for leading Organigram brands such as SHRED, providing opportunities in the future for “turn-key” licensing in the United States and other places where cannabis is legal.
Details of the Convertible Loan
Organigram, according to the loan agreement, will offer up to $8 million in three phases to Phylos. Organigram advanced Phylos an initial $3.25 million on May 25th, with a commitment to fund up to an additional $4.75 million over two phases within 12 and 24 months from the initial closing date, subject to the completion of specific milestones. This convertible loan will be paid-in-kind interest at a rate of U.S. Prime + 3.5% (with an overall cap of 11%) under certain conditions. The maturity date of the convertible loan would be five years from the initial closing date, with one-year extensions and specific conditions. Under certain circumstances, the convertible loan is convertible into Phylos’ common share equity.
Photo: Benzinga edit with photo by Kindel Media on Pexels
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