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 fourth quarter and full year 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, press the star one. Thank you. Craig McPhail, you may begin your conference.

Thank you, and good morning, everyone. Before we start, I would like to remind everyone that today's call will include estimates and other forward-looking information from 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 our actual results to differ. Further, A 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. 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 providers. Unless otherwise indicated, all references to market data are sourced from high-fire data as of August 31, 2022, pulled on October 18, 2022. 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 And year ended August 31st, 2022. And I will provide a general business update. We will then open the call for questions. Now, I joined Organigram in September of 2021. And at the time, I said what attracted me to the company was its high quality products, strong brand portfolio, and proven ability to innovate to meet consumer needs. This was bolstered by a strong sales team to get products into distribution and efficient operations that would enable us to compete in the large value segments. I'm happy to report that in fiscal 2022, those strengths proved to be significant and resulted in success on several fronts. In fiscal 22, we generated net revenue of $146 million, an 84% increase over fiscal 21. In Q4, our net revenue was $45.5 million, an 83% increase over Q4 21, and our sixth consecutive quarter of record revenue growth. We also became adjusted EBITDA positive in Q2 of this year and have delivered three consecutive quarters of positive earnings. Our share of the adult recreational market grew to 8.2% in Q4 fiscal 2022, from 7% in Q4 2021. For the month of October 2022, we held the number two position in terms of market share. According to High Fire, Organigram was the only top five LP to grow market share in our fiscal 2022. At the end of our fiscal year, we held the number one position in the flower category, which represents the largest portion of the adult recreational market. Also, according to provincial board data, since January, we held the number one position in Ontario in ship sales, with a Q4 market share of 8.8%, and in the Maritimes, with a 14% share in Q4. In Quebec, we moved into the number three position in September, as shown by data from Weed Crawler. We have built Shred into a recognized brand across multiple categories, milled flour, gummies, and vapes. It is one of the biggest brands in the country, with over $150 million in retail sales. Shred also has a solid net promoter score of 77%, according to Brightfield, based on field surveys from August 4th to September 27th. We continue to hold the number three position in the gummy category. This includes Shred'Em and Bonjour CBD infused gummies, and are the number two in terms of volume sold. In Q4, we had a 24.3% volume market share, which means that close to one out of every four gummies sold in Canada was an Organigram product. In fiscal 2022, we introduced over 60 new SKUs to the market to refresh and optimize our product offerings. These new SKUs represented about 30% of our sales in the year, which speaks to our ability to not only innovate, but to create products that engage consumers. In Ontario, we have the highest average sales per SKU, which is more than double the average of the top 10 LPs, showing the efficiency of our lineup. A great example of innovation is our ingestible extract, Edison Joltz. We introduced Joltz in August 2021 using proprietary IP, and it quickly took the second position in the capsule category. There are now three flavors in the Joltz lineup, and it holds a 26% market share. In fiscal 2022, we also launched our Monjour Wellness Focus brand. It was the first large format and multi-flavor offering in the space and quickly gained share. It is now the number one selling pure CBD gummy with a 37% share. We continue to innovate with Monjour by adding new flavors and other minor cannabinoids into our formulation. We have also been successful at innovating in the value segments. Big Bag of Buds was introduced in May 21 in the 28-gram format. It was unique in offering quality high-potency strains not typically available in the value segment, such as ultra-sour and GMO cookies. It was quickly embraced by consumers and received positive reviews on social media. Now, we did not have a presence serving the value segment in smaller pack sizes, which accounts for over $300 million in retail sales. So to address this, subsequent to quarter end, we introduced a new brand, Coley Mountain. Currently, we are in market with Estrange Runs and MAC1 in 3.5 gram format, as well as Press Cash. I'd also like to talk about our success with acquisitions. Compared to the rest of the industry, we have taken a very prudent approach to acquiring companies. We look for those that will complement our product line and have the potential to be accretive to shareholder value. First was the Edibles and Infusions Corporation, based in Winnipeg, which we acquired in April of 21. It was pre-revenue and pre-sales licensed, but had a manufacturing facility purpose-built for cannabis-infused products with highly efficient state-of-the-art equipment. This provided us with a significant opportunity to disrupt the cannabis edible market in Canada. We launched three gummy SKUs in Q4 of 2021 and grew that to 14 SKUs by the end of 2022. The three original SKUs continued to grow in sales from Q1 to Q4 by 19%, while we brought new ones to market, indicating that the new SKUs attracted new consumers and further built our market position. We have invested in additional automation at Winnipeg, including high-speed pouch packing lines and automated excise stamping. In September of 21, we shipped 339,000 gummies. In October of 22, we shipped 3 million. and have the capacity to increase further. In December, we purchased Laurentian Organics, a licensed producer of craft cannabis and hash. As well as giving us an important presence in Quebec, it was a successful operation with accretive revenue and EBITDA. We have committed $13 million to expand the facility to increase its annual capacity to 2,400 kilograms of flour and over 2 million package units of hash. Construction is expected to be complete by the end of this calendar year. Our new Holy Mountain pressed hash is produced at this facility. We added Laurentian's Tremblant hash to our national distribution and it was available in 10 provinces in five months post-close. It has maintained its number one position in the Quebec market and is now the number two hash skew in Canada. Also, a very important contemplated synergy, our new foothold in Quebec enabled significant growth of core organogram SKUs in the province. In fiscal 2022, we achieved a 50% increase in revenue per SKU, and as of September 2022, we increased the number of SKUs in market from 21 to 35. I'm also pleased with our production success in fiscal 2022. In Q4, we brought all the cultivation rooms in our 4C expansion at our Moncton Cultivation Center online. We have 115 grow rooms available to us for the flowering period, which provides an annual growing capacity of 85,000 kilograms. We have also completed environmental enhancements at the facility with LED lighting in every room. This has resulted in an 11% increase in yield per plant, decreased power consumption per room, and a 21% reduction in the cost of cultivation. We have also introduced fractional watering. It will be available in all rooms by the end of this calendar year and has already shown to create further improvements. The results of these efforts have been lower production costs, higher yields, and higher potency. In Q4 of fiscal 22, we had a record harvest of 16,000 kilos, 33% higher than Q4 of fiscal 21. and yield per plant was 141 grams compared to 127 grams a year earlier. In fiscal 2022, the Center of Excellence formed as part of our product development collaboration with BAT, completed all key spaces, including the R&D lab and the state-of-the-art bio lab for advanced plant science research. As part of the development, the COE has undertaken initial stage development and safety studies on first-generation edibles and novel beverages as part of its work. The COE has created and assessed numerous delivery systems and created over 60 unique formulations to develop differentiated products in the future. Another key strategic advantage for us is the dedicated cultivation R&D space. This new space has accelerated rapid assessments and screening by delivering 20 to 30 unique cultivars every two months while freeing up rooms for commercial growth. The plant science team continues to move the garden towards unique, high terpene, and high THC in-house grown cultivars, while also leveraging the newly commissioned biolab for ongoing plant science innovation. Their focus is on quality, potency, and disease resistance to enrich the future flower pipeline. In fiscal 2022, Organigram established a significant position as an international supplier of cannabis. We shipped a total of $15.4 million of flour to CanDoc in Israel and MedCan and Canotrek in Australia. This compares to the $351,000 of international sales in fiscal 2021. Today, this fiscal year, we have shipped approximately $6 million of dry flour internationally. With our expanding capacity at Moncton, we expect to increase our revenue from international sales. On November 17th, we entered into a new agreement with CanDoc in Israel. This new agreement, over a three-year supply term, allows for the shipment of 10,000 kilograms of dry flour with an option for CanDoc to order an additional 10,000 kilograms. This agreement speaks to the consistently high quality of our flour and our strong relationship with CanDoc and allows us to collaborate in the future on other emerging medical cannabis markets and jurisdictions. I will now turn it over to Derek to present the financial overview.