MONCTON, NEW BRUNSWICK--(Marketwired - March 7, 2017) - Licensed marijuana producer Organigram Inc. and its
parent company Organigram Holdings Inc. (TSX VENTURE:OGI)(OTCQB:OGRMF) (collectively, the "Company" or
"Organigram") will launch a strong defense against a proposed class-action suit related to recent voluntary
product recalls.
The Company was served with notice of the proceeding yesterday. The proposed suit was filed with the Supreme Court of
Nova Scotia by a Halifax-based law firm. The filing seeks to represent Organigram clients who purchased and consumed medical
marijuana that was later found to contain trace elements of the pesticides myclobutanil and bifenazate which are not approved for
use by licensed growers.
Denis Arsenault, Organigram's Chief Executive Officer, said the Company offered all non-insured clients impacted by the
voluntary recall an account credit equal to the full purchase price of the recalled product. He also noted that public
comments made yesterday by the lawyer seeking to bring the action had erroneously stated Organigram had offered refunds to its
clients instead of providing account credits and newly harvested marijuana. "We have been in constant communication with
clients who purchased recalled product. We have been clear that Organigram will meet their needs by providing account credits
valued at 100 per cent of that product's value and will make freshly harvested and tested product available to them. The
majority of our clients are very satisfied with this action and are already using their credits."
"In terms of the proposed class-action suit, we intend to vigorously defend our company and its actions related to the
product recall," stated Arsenault. "We have already engaged Borden Ladner Gervais LLP, one of Canada's leading
class-action defence law firms, to assist with our defence." The Supreme Court of Nova Scotia will likely take a number of
months to determine if it will allow the proposed suit to proceed as a class action. "In the meantime, our primary focus will
be on meeting the needs of our clients," he said.
"From a financial perspective, we believe there is very little exposure for Organigram going forward," said
Arsenault. "We have already allocated $2.26 million this quarter to cover losses associated with the recalls," he
said. "We are also talking with our insurer about the company's coverage related to the proposed class-action suit
should the court allow it to proceed."
Organigram recently completed a thorough investigation into events that led to the December and January voluntary recalls. As
a result of that investigation, the company put a number of new growing and harvesting protocols in place. All marijuana
harvested since the recall has tested negative for pesticides. "We have also decided to post all testing results on our
website beginning next week," said Arsenault. "With the new procedures in place, we are fully confident in our ability
to deliver high-quality product to our clients."
About Organigram Holdings Inc.
Organigram Holdings Inc. is a TSX Venture Exchange listed company whose wholly owned subsidiary, Organigram Inc., is a
licensed producer of medical marijuana in Canada. Organigram is focused on producing the highest quality, condition specific
medical marijuana for patients in Canada. Organigram's facility is located in Moncton, New Brunswick and the Company is regulated
by the Access to Cannabis for Medical Purposes Regulations ("ACMPR").
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking information which involves known and unknown risks, uncertainties and other factors
that may cause actual events to differ materially from current expectation. Important factors - including the availability of
funds, the results of financing efforts, crop yields, outcome of litigation - that could cause actual results to differ
materially from the Company's expectations are disclosed in the Company's documents filed from time to time on SEDAR (see www.sedar.com). Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this press release. The Company disclaims any intention or
obligation, except to the extent required by law, to update or revise any forward looking statements, whether as a result of new
information, future events or otherwise.