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 third quarter fiscal 2022 earnings 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, just press the star 1. Thank you. Craig McPhail, you may begin your conference.

Good morning and welcome to Organigram Holding's earnings conference call for the third quarter of fiscal year 2022. As a reminder, this conference call is being recorded and a replay will be available on Organigram's website. Further, reference will be made to certain non-IFRS measures during this call. including adjusted EBITDA and adjusted gross margin. These measures do not have any standardized meaning under IFRS. Our approach to calculating these measures may differ from other issuers, so these measures may not be directly comparable. As such, 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 May 31, 2022. and I will provide a general business update. We will then open the call for questions. In the third quarter of fiscal 2022, we achieved our fourth consecutive quarter of record year-over-year revenue growth. This progress speaks to our ability to build enduring, recognizable brands and innovate to create consumer demand in multiple segments of the cannabis market. As well as top-line growth, we continue to secure a growing share of the market. According to high-fire data as of July 5th, in the third quarter, we held the number three position in the Canadian recreational market with a 7.8% share, up from 7% in Q4 of fiscal 21. We saw further momentum in June with an 8.5% share, with only 50 basis points separating the top three Canadian LPs in June. We are confident that our consumer-focused strategy will enable us to continue to vie for market leadership. Our Shred Milk flour products are the top sellers in Canada, with Funkmaster, Tropic Thunder, and Narbury holding the number one, two, and three positions. We also hold the number three position in the gummies category in terms of sales, and are number two in terms of volume sold. This includes Shredum's Gummies and Bonjour, our large format CBD infused soft chews, both benefiting from new product introductions. Edison Jolt, our unique high potency THC lozenge, maintains its position as the top skew in the capsules and mints category. In the third quarter, we added two new flavors to the Jolt lineup, Electric Lemon and Arctic Cherry, and both quickly took top 10 positions in the category. According to Brightfield Research, a survey of over 3,000 cannabis users conducted in calendar Q1 of 2022, our three largest brands, Edison, Shred, and Big Bag of Buds, all have net promoter scores of over 80, which shows that when Organigram builds brands, we build ones that resonate and win with consumers. The key to our growth strategy is to introduce new products to our lineup based on consumer insights and leveraging our brands. In the last quarter, we extended the Shred brand with products in the flour, vape, and derivative segments. ShredX KEEP infused blend was launched in March. This product combines KEEP with Shred milk flour and is now available in seven provinces. ShredX Vape are 510 cartridges that were also introduced early in the quarter and were well received. With this launch, we have made gains in the vape segment, moving to the number 12 position in the category from number 22 back in January. Shred Dankmeister XL Bong Blend, a unique grind of shred milled flour designed for bong and pipe users, was launched very recently in Ontario. Initial consumer reaction has been positive, and we plan to roll it out to all provinces. We also added two sour and three pop flavor extensions to the shred and gummy line, which has helped contribute to our overall third market position in that segment. Now, our Edison brand has had additions in flour and derivatives. Besides Edison Joltz mentioned previously, the cherry limelight strain was introduced through our in-house genetics program and made available in flour and in live resin-packed cartridges. In May, we also added a novel product to our Bonjour Wellness brand. CBN Bedtime Blueberry Lemon Soft Chews combines the cannabinoid CBN, which is reported to have sedative properties, with CBD and THC in a lemon blueberry flavor. Moving on to our international business, in Q3, we made $1.3 million worth of shipments to Canitrec and MedCan in Australia. Subsequent to quarter end, we made another shipment to Canatrack worth $1.8 million. And this month, we made a shipment to CanDoc in Israel worth $3.3 million. We expect to make further international shipments in fiscal 2022 and are working on potential opportunities to expand supply arrangements into Europe, leveraging our capacity from the expansion at Moncton. Now let's look at operations. We are finalizing the 4C expansion at our Moncton Cultivation Center, which is substantially complete, and already 20 of 29 cultivation rooms are online, with the remaining rooms expected to put in use next month. With harvests from the initial rooms filled back in May, the first harvest will occur this month. Once complete, the total annual capacity at Moncton is estimated to be 82,000 kilograms. Environmental enhancements are currently in place in about 66% of the facility and should be fully implemented by Q1 of fiscal 2023. These will further enhance yields and flower quality based on results obtained from cultivation rooms already benefiting from these upgrades. As a result of our continuous improvement, yield per plant was 132 grams in Q3 compared to 117 grams in Q3 of last year. and we are targeting 150 grams once the enhancements are complete. In Winnipeg, during Q3, we installed and commissioned our packaging and excise stamp automation and are now averaging 4,000 packaging units per hour. This improved throughput will drive improved margins and support our increasing GONI demand. We are also making progress with the LAC Superior facility acquired in December. It currently has 6,800 square feet of cultivation area, which is being expanded to 33,000 square feet. This expansion, expected to be completed by the end of the calendar year, will increase the annual capacity to 2,400 kilograms of flower from the current 600 kilograms and 2 million package units of hash from the current 1 million. We have committed $13 million towards the expansion in order to support increased hash and craft flower demand from the facility. In Q3, we expanded distribution of Trompe en Hache to five provinces, achieving full distribution across the country. In addition to being the top hash SKU in Quebec, we have the number one SKU in PEI in New Brunswick in the latest 13 weeks, the number two SKU in Ontario, while approaching top five in BC, Alberta, and Nova Scotia. We also launched Laurentian Craft Flour into Ontario. The Biolab construction at the Centre of Excellence was completed in the quarter, and advanced plant science research and consumer-focused research on CBD and other cannabinoid edibles have commenced. This research, part of the product development collaboration agreement with BAT, will enable us to continue to produce unique, exciting products for Canadian consumers and create proprietary IP that we can introduce globally. I will now turn it over to Derek to present the financial overview.