Organigram Global Inc.

Good morning. My name is Rob and I will be your conference operator today. At this time, I would like to welcome everyone to the Organigram Holdings second quarter fiscal 2022 results conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press the star one. Thank you. Craig McPhail, you may begin your conference.

Today's call should be aware that it will contain estimates and other forward-looking information in which the company's actual results could differ. Please review the cautionary language in today's press release on various factors, assumptions, and risks that could cause your actual results to differ. Further, reference will be made to certain IFRS measures during the call, including adjusted EBITDA and adjusted gross margin. These measures do not have any standardized meaning under IFRS, and our approach in calculating these measures may differ from that of other issuers, so these measures may not be directly comparable. Accordingly, these non-IFRS measures are intended to provide additional information and should not be considered in isolation. or as a substitute for measures of performance prepared in accordance with IFRS. Please see today's earnings report for more information about these measures. Listeners should also be aware that in making certain statements relating to market share data, the company relies on reputable third-party data providers. I would now like to introduce Bina Goldenberg, Chief Executive Officer of Organigram Holdings Inc. Please go ahead, Ms. Goldenberg.

Thank you, and good morning, everyone. With me is Derek West, our Chief Financial Officer. For today's call, we'll discuss the financial results for the three months ended February 28th, 2022, and I will provide a general business update. We will then open the call for questions. I'm happy to report that second quarter of fiscal 2022, we continued the progress of the past several quarters. We again achieved record net revenue in the quarter, the highest in the history of the company. We grew our market share and now hold the number three position among Canadian LPs in the recreational market in Canada. And most importantly, we achieved a positive adjusted EBITDA of $1.6 million two quarters earlier than we projected at the start of the year. Also in the quarter, as we announced in our last call, we acquired Laurentian, an artisanal craft grower and premium hash producer based out of Quebec. And net revenue in Q2 was $31.8 million, a 117% increase over Q2 of fiscal 2021. This is a record level of net revenue for Organigram and demonstrates our continuing success at understanding consumer needs, innovating to best address market demand, and introducing compelling brands and products that resonate. And we continue to grow our market share. In February, we secured the number three position in market share among Canadian LPs for the second month in a row, with a share of 8.2%, according to High Fire. In March, the momentum continues with another 20 basis point gains for a market share of 8.4%. We also continue to hold the number one position in the flower category, which represents about half of the Canadian cannabis market. Our Shred Mills flour products are the top sellers in Canada, with Shred Tropic Thunder being the best-selling flour product in the country. We also hold the number three position in the gummies category, having doubled our market share quarter over quarter, with two of our SKUs amongst the top 10 best sellers in the country. This market position includes Shred and Gummies, which were introduced this past August, and Mon Jour, our large-format CBD-infused sock juice, introduced this past November. Edison Joltz, our unique high-potency THC lozenge, maintains its position as a bestseller in the ingestible extracts category. Now moving on to innovation, we recognize the need to bring news to the category, so we continue to launch new products. We have leveraged our Shred brand that has achieved high visibility among cannabis consumers. In March, we shipped ShredX Keef Infused Blend, an innovative product that combines the convenience and popularity of shred milled flour with the potency of Keef in a 50-50 ratio. We also launched ShredX Vape. These are 510 cartridge vapes with the flavor profiles of shred milled flour products, Tropic Thunder, Mega Melon, and Funkmaster. And how are we doing? But within days of launch, ShredX Tropic Thunder was the fourth best-selling vape in Ontario. Building on the success of ShredM's gummies, we added unique line extensions. ShredM's Pop gummies in the classic pop flavors of cola, root beer, and cream soda were introduced in March. We've also added two new sour flavors, Sour Apple Slap and Sour Blue Raspberry. With eight SKUs now available to consumers, we expect to strengthen our market position in the gummy category. We've also added two new premium strains to our Edison line, with Edison Kush Cakes and Edison Frozen Lemons. These high-potency and terpene-rich additions will create further engagement with cannabis enthusiasts. With Big Bag of Buds, our large-format value brand, we added Pink Cookies, a high-potency indica strain. This expansion of our product line addresses the desire for specific strains by value-seeking consumers and reflects the evolution of the Canadian cannabis market. International sales also bolstered our Q2 results. We shipped approximately 1,700 kilograms of dry flower to Israel and Australia in the quarter, marking the highest international B2B shipments in the history of the company. We expect to have further shipments to CanDoc in Israel and Canitrek in Australia in fiscal 2022, and we'll look to expand our international partners to ship more wholesale dry flour. Now let's look at operations, beginning with Laurentian. After acquiring Laurentian in December, we began working on integration. One of our priorities was to increase the distribution of its unique Tremblant hash and Laurentian craft flour products. At acquisition, Laurentian products were available in four provinces. By the end of the fiscal year, we will be available in all 10. In Ontario, we've been successful at increasing distribution levels of Tremblant hash from 25% to almost 40% of Ontario's 1,500 stores and have grown sales by 21%. This Ontario example underscores our success in leveraging our marketing, distribution, and field sales capabilities to drive results. We expect to be able to achieve the same success across Canada as we increase the footprint of Laurentian brands. We are also making progress in expanding and automating production at Laurentian. Construction and licensing for the additional space is expected to be complete by the summer of 2022, with a four times increase in cultivation capacity and increased automation, processing and storage space to be achieved by the end of 2022. Hash production at Laurentian is now supported by high-quality and high-potency keef coming from our Moncton facility. This was identified as an acquisition synergy. At our Moncton campus, we are completing the Phase 4C expansion and expect to reach upwards of 80,000 kilograms of dried flower capacity. Environmental enhancements are currently in place in approximately 40% of the facility and should be fully implemented by the end of the year. These upgrades have and will continue to further enhance yields and flower quality as they are completed. We currently have two automated pre-roll lines and we'll be adding high-speed pouch filling lines for Shred and Big Bag of Buds by the end of fiscal 2022. In Winnipeg, adding on to our highly automated gummy production line, we have automated labeling and excise stamping in our commissioning pouch packaging equipment. We have also upgraded and leveraged our warehouse to optimize our logistics network and drive freight savings. These changes help improve our efficiencies, margins, and customer service. The build-out and improvement in Moncton and Winnipeg reflect our strategy to make investments based on recognized business needs and strong payback. In the quarter, all large-scale construction projects were substantially completed at the Product Development Centre of Excellence in Moncton. The Biolab is being fully equipped in Q3, and then we will begin to conduct advanced plant science research. In the quarter, our joint R&D efforts continue to progress well, and we look forward to applying the discoveries and deep scientific knowledge to both strengthen our existing market products as well as develop new consumer-centric innovations. It's important to note that BAT's support for the product development collaboration and Organigram as a whole was further showcased at the beginning of March when they invested $6.3 million into the company. This investment was made through the exercise of their top-up rights pursuant to an investor rights agreement and increased their equity position from 18.8% to 19.4%. Also, as mentioned in our call last quarter, in December, we increased our cumulative investment in hyacinth biologicals by $2.5 million to $10 million for a strong minority position. Hyacinth's advanced research into using biosynthesis to produce THC, CBD, and rare cannabinoids without using cannabis plants provides us with another avenue to innovate in the future. Through these collaborations, and in addition to our in-house R&D capabilities, we will continue to produce unique, exciting products for the Canadian consumers, and subject to terms of the PDC, create proprietary IP that we can introduce globally. Now we will turn it over to Derek to present the financial overview.