Organigram Fortifies Cannabis Genetics Pipeline with Expanded Phylos Bioscience Investment
Organigram Global Inc. is bolstering its position in the competitive cannabis market through an expanded strategic alliance with Phylos Bioscience Inc., a leader in cannabis genetics. This enhanced agreement, which includes a $3 million investment by Organigram, secures priority access to Phylos’ cutting-edge autoflower genetics and an exclusive product pipeline through 2030. The move is designed to accelerate Organigram’s innovation, ensure operational security, and solidify its market leadership in seed-based cultivation.
The partnership is structured to provide Organigram with a robust and consistent supply of next-generation cannabis genetics, with 30 new cultivars slated for delivery biannually until 2030. This sustained influx of novel genetics is crucial for maintaining a competitive edge in both the recreational and medical cannabis sectors, allowing Organigram to continually refresh its product offerings and cater to evolving consumer preferences.
A significant aspect of the expanded agreement is the granting of five-year exclusive rights to Organigram for its chosen cannabis genetics in international markets. This includes key regions such as Canada, Australia, the UK, Germany, and Israel, with provisions for adding new territories as Organigram pursues global expansion. This exclusivity provides Organigram with a substantial competitive advantage, enabling it to differentiate its products and capture market share in high-value international medical markets. The annual portfolio reviews ensure that Organigram retains exclusivity only for commercially relevant cultivars, maintaining agility and strategic focus.
From a financial perspective, Organigram is increasing its commitment to Phylos. The company will consolidate its existing investment with a new $3 million advance, bringing the total principal of the convertible loan to $10 million. This loan matures in May 2028 and is subject to conversion or other resolution mechanisms as detailed in the amended agreement. This financial maneuver underscores Organigram’s confidence in the long-term value of Phylos’ genetic innovations and its strategic importance to Organigram’s growth trajectory.
Borna Zlamalik, SVP of Innovation & International R&D at Organigram, highlighted the strategic significance of seed-based cultivation, stating, “Seed-based cultivation has become a key advantage of Organigram’s cultivation strategy, giving us unprecedented consistency, scalability, and economic benefit. Our follow-on investment in Phylos secures the portfolio breadth of next-generation cultivars required to meet the needs of Organigram’s consumers and patients.”
The partnership is expected to yield tangible benefits for both companies. For Organigram, it translates to enhanced operational security, privileged access to unique genetic material, and a predictable pipeline of innovative products. This will likely translate into improved yield consistency, higher quality flower, and greater pricing power, all critical factors for investor assessment in the cannabis industry.
Ralph Risch, CEO of Phylos, commented on the synergy, “Organigram saw early that the next phase of cannabis production would be driven by scientifically bred genetics. Their investment allows Phylos to accelerate development of new traits and F1 hybrid seeds, while giving Organigram a meaningful economic advantage as the first to deploy those innovations at commercial scale.”
This collaboration between Organigram and Phylos signifies a forward-thinking approach to cannabis cultivation, emphasizing the critical role of advanced genetics and strategic intellectual property management in driving market leadership and sustainable growth.
**About Organigram Global Inc.**
Organigram Global Inc., traded on NASDAQ and TSX, is a prominent player in the Canadian cannabis market. Through its subsidiary Organigram Inc., it is a licensed cultivator and manufacturer of cannabis-derived products. The company also has a presence in the U.S. and Canadian cannabinoid beverage markets via its acquisition of Collective Project Limited. Organigram is committed to producing high-quality cannabis for adult consumers and actively pursues international business partnerships. Its diverse portfolio of brands includes Edison, Big Bag O’ Buds, SHRED, Monjour, Tremblant, Collective Project, Trailblazer, BOXHOT, and DEBUNK. Organigram operates state-of-the-art facilities across Canada, specializing in cultivation, extraction, formulation, and packaging.
**About Phylos Bioscience Inc.**
Phylos is a dedicated cannabis genetics company focused on developing scientifically bred, high-quality cannabis genetics designed for cost-effective, large-scale cultivation. Phylos offers Production-Ready Seed™, which includes premium, phenotypically stable, fully feminized F1 hybrid seeds engineered for superior flower quality, potency, vigor, and yield.
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