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 first quarter 2023 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. We ask you to please limit yourself to one question and one follow-up. You may re-queue if you have further questions. Thank you. Craig McPhail, you may begin your conference.

Good morning and thank you for joining us today. As a reminder, this conference call is being recorded and a replay will be available on Organigram's website. Listeners should be aware that today's call will include estimates and other forward-looking information 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, 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 the company relies on reputable third-party providers when making certain statements relating to market share data. Unless otherwise indicated, all references to market data are sourced from HIFIRE data as of November 30th, 2022, pulled on December 21st, 2022. I would 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 results for the three months ended November 30th, 2022, and a general business update. We will then open the call for questions. The first quarter of fiscal 2023 reflected the results of our efforts in fiscal 2022 to enhance scale and efficiency through facility expansion and productivity improvements. These initiatives have had a positive direct impact on our bottom line. In the quarter, as well as a 43% year-over-year increase in net revenue, we delivered our fourth consecutive quarter of positive adjusted EBITDA, positive net income, and record adjusted gross margin. In Q1, we maintained our number three position among Canadian LPs. We were number two in the flower segment, number three in gummies and hash, and again held the number one market position in capsules. Shred remains a solid and well-recognized brand embraced by cannabis consumers, and we continue to hold the number one position in milled flour by a wide margin. We expect our focus on product innovation, brand revitalization, strong sales execution, and advanced plant science will enable us to continue to gain share. Looking at provincial board data, we have leading market share in the Maritime, and we're number one in flour, gummies, and hash. In Ontario, we had the top three selling SKUs. We were number three in gummies, number two in hash and whole flour, and number one in milled flour and capsules. In Quebec, our sales have nearly tripled compared to Q1 of fiscal 2022. This is partly from the addition of products from the Laurentian acquisition, but also due to significant increased sales of our overall portfolio. Based on data from Weed Crawler, we had the number one hash SKU, were number one in milk flour, and Shred was the third largest brand in the province. This national market strength comes from our focus on creating products that excite consumers. In Q1, we introduced 17 new SKUs, including infused pre-rolls such as Edison Grape Crescendo and Tremblant Sweet Cherry. In November, we launched Holy Mountain, a new brand in English Canada, and Rola in Quebec. These brands offer unique strains such as Runts and MAC1 in 3.5 gram formats and pressed cash. They provide us a position in the small pack size value segment that isn't covered by our successful big bag of buds. In terms of production, with the 4C expansion complete at Moncton in Q4 of fiscal 22, we achieved scaled benefits from a record harvest in Q1. After the expansion, Moncton has an annual capacity of 85,000 kilograms, but this will increase as we continue to refine our cultivation technology. This includes LED lighting, implemented in fiscal 2022, and fractional watering, which is now in place in all grow rooms. In the quarter, we achieved a yield of 168 grams per plant, a 30% increase over 129 grams in Q1 of fiscal 22. As a consequence of the larger capacity and improved yield, the company has significantly reduced its cost of cultivation, the lowest cost in our history. In Winnipeg, we have increased our output for gummies and kilograms by 35% from Q4-22 to Q1-23. This was driven by the increase of Monjour units in response to high consumer demand. We continue to have great productivity on our packaging line with 35,000 to 40,000 poaches per day production. At Lac Supérieur, construction is substantially complete. We expect to begin to move into the new building in February, which will help support the launch of several new exciting hash cubes. The greenhouse expansion is expected to come online in May. This will take us towards expanding the facility's annual capacity to 2,400 kilograms of crop flour, and over 2 million packaged units of hash. As well as expanding and increasing automation at Lac Superior, we are adding staff to the packaging chip to increase production. Another initiative completed in Q1 was transitioning our medical cannabis business from direct patient fulfillment to having orders completed through medical cannabis by Shoppers Drug Mart. This provides a proven and trusted platform for our patients. We remain committed to our medical cannabis business and in Q1 have added 26 skews to the shopper's channel. Our center of excellence is now active and focused across various cannabinoids to develop and launch new product technologies. One area of activity is supporting discovery and development efforts on novel vapor ingredients and substrates. This research also creates an industry-leading vapor data set that will serve as a foundation for future development activities, including consumer safety, product quality, and performance. The state-of-the-art BioLab facility has been operational since June. The focus is on developing genetic toolboxes to aid the research of key cannabis traits and accelerate R&D activities. This has already supported several plant science discoveries that will benefit our current plant portfolio and long-term growth strategies. So overall, this foundation of increased capacity, high quality, efficient production, and innovation serves us well in addressing markets in Canada and internationally. In Q1, we delivered $5.9 million of dry flour to Israel and Australia. This is a 71% increase over $3.4 million in Q1 of fiscal 2022. On November 17th, we signed a new agreement with CanDoc in Israel. This agreement over a three-year term supply allows for the shipment of 10,000 kilograms of dried flour with an option for CanDoc to order an additional 10,000 kilograms. This is a great long-term partnership with CanDoc. The product sold in Israel is dual branded with Organigram and is identified as indoor grown Canadian flour, which is recognized as premium product by Israeli consumers. We also expect to make further shipments to Australia in fiscal 2023. and are looking at other international opportunities. I will now turn it over to Derek to present the financial review, and then I will return with some closing comments.