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Organigram To Cut About 220 Jobs; Delay Q3 Report Filing By One Week

Organigram Holdings Inc., the parent company of Canada-based cannabis producer Organigram Inc., said it will reduce its workforce by about 25 percent in order to "better align its production capacity to prevailing market conditions."

According to Organigram, the decision to cut jobs will impact its workforce by about 220 employees, including a small number of employees who are not on temporary layoff.

Following the job cuts, Organigram will have a leaner, cross-functional workforce of about 433 employees operating out of its indoor production facility in Moncton, New Brunswick.

Organigram has a company-wide workforce of 609 employees, including 84 workers on temporary layoff who may be recalled by the company if the business requires.

The company said that for the foreseeable future, it will continue to cultivate less cannabis than the target production capacity its Moncton campus was designed for. It will focus on bringing new cultivars to market and increasing the tetrahydrocannabinol or THC and terpene profile of its dried flower to meet emerging consumer demand.

In addition, Organigram said it is postponing filing of its interim financial statements for the third quarter ended May 31, 2020 by about one week. The company is relying on blanket exemptive relief granted by the Canadian securities regulatory authorities to delay the filing.

The company expects to file the interim filings on July 21, 2020.

Organigram is focused on producing indoor-grown cannabis for patients and adult recreational consumers in Canada. The company has developed a portfolio of legal adult use recreational cannabis brands, including Edison Cannabis Company, Ankr Organics and Trailblazer.

In early April, Organigram said it is temporary laying off about 400 employees, or about 45 per cent of its workforce, primarily to help boost its efforts to halt the spread of COVID-19.

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