OGI INVESTOR PRESENTATION - investors.organigram.ca€¦ · OGI INVESTOR PRESENTATION. NASDAQ (OGI) TSX (OGI) Cautionary Statement. This document is current as of October 7, 2020,

OGI INVESTORS’ PRESENTATION |

OGI INVESTOR PRESENTATIONNASDAQ (OGI)TSX (OGI)

Cautionary StatementThis document is current as of October 7, 2020, except where otherwise stated. The informationcontained in this presentation is provided by Organigram (“OGI” or the “Company”) forinformational purposes only and does not constitute an offer to issue or arrange to issue, or thesolicitation of an offer to issue, securities of OGI or other financial products. No part of thispresentation shall form the basis or be relied upon in connection with any contract, commitment orinvestment decisions in relation thereto. The information contained herein is not investment orfinancial product advice and is not intended to be used as the basis for making an investmentdecision. No securities commission or similar regulatory authority in Canada has reviewed thispresentation.

No representation or warranty, express or implied, is made as to the fairness, accuracy,completeness or correctness of the information, opinions and conclusions contained in thispresentation. This presentation is not meant to provide a complete or comprehensive analysis ofOGI’s financial or business prospects. To the maximum extent permitted by law, none of OGI nor itsdirectors, officers, employees or agents, nor any other person accepts any liability, including,without limitation, any liability arising out of fault or negligence, for any loss arising from the use ofthe information contained in this presentation.

Certain of the information in this presentation contains certain “forward-looking information” withinthe meaning of applicable securities laws (“forward-looking information”). Forward-lookinginformation, in general, can be identified by words such as “outlook”, “objective”, “plan”, “expect”,“project”, “intend”, “believe”, “anticipate”, “estimate”, “continue”, “budget”, “schedule” or “forecast”and other similar words, or statements that certain events or conditions “may”, “could”, “would’,“might” or “will” occur. Forward-looking information is based on the opinions and estimates ofmanagement at the date the statements are made, and are subject to a variety of risks anduncertainties and other factors that could cause actual events or results to differ materially fromthose anticipated in forward-looking information, including, among others, the Company and itssubsidiaries will be able to, where applicable, cultivate cannabis pursuant to applicable law and onthe currently anticipated timelines; industry competition; general economic conditions and globalevents including the impact, duration and magnitude of COVID-19, heightened uncertainty as aresult of COVID-19; changing market and consumer patterns related to existing and new productforms and yet to be launched products; modified facility plans and production plans; timing forlaunch of new product forms, actions of customers, suppliers, partners, distributors, competitors orregulatory authorities; factors impacting the future market of the Canadian cannabis market and theCompany’s future economic performance, OGI’s crop yields, product liability, governmentregulation, legislative and regulatory developments (including in relation to cannabis from HealthCanada), demand for the Company’s cannabis and related products, including the Company’s Rec2.0 products, and the sufficiency of the retail networks to supply such demand; ability to enter and

participate in international market opportunities; general economic, financial market, regulatory andpolitical conditions in which the Company operates; the ability of the Company to compete in thecannabis industry; a material decline in cannabis prices, as well as those risk factors identified inOGI’s most recent MD&A, AIF and other disclosure documents available on SEDAR atwww.sedar.com and www.sec.gov/edgar.shtml under OGI’s issuer profile. The informationcontained in this presentation should be considered in the context of the circumstances prevailingat the time and OGI undertakes no obligation to update forward-looking information to reflectmaterial developments which may occur after the date this presentation was prepared orif circumstances or management’s estimates or opinions should change except as required by law.The reader is cautioned not to place undue reliance on forward-looking statements.

The financial information in this document contains certain financial performance measures that arenot defined by and do not have any standardized meaning under IFRS and are used bymanagement to assess the financial and operational performance of the Company. These includeadjusted EBITDA and adjusted EBITDA as a percentage of net revenue (adjusted EBITDA margin %).The Company believes that these non-IFRS financial measures, in addition to conventional measuresprepared in accordance with IFRS, enable investors to evaluate the Company’s operating results,underlying performance and prospects in a similar manner to the Company’s management. Asthere are no standardized methods of calculating these non-IFRS measures, the Company’sapproach may differ from those used by other issuers, and accordingly, the use of these measuresmay not be directly comparable. Accordingly, these non-IFRS measures are intended to provideadditional information and should not be considered in isolation or as a substitute for measures ofperformance prepared in accordance with IFRS. For further information regarding these non-IFRSmeasures, including definitions, a quantitative reconciliation to the most directly comparable IFRSmeasure, see the Company’s Fiscal 2019 MD&A and the Company’s Q3 Fiscal 2020 MD&A.

This presentation does not constitute an offer of shares for sale in the United States or to any personthat is, or is acting for the account or benefit of, any U.S. person as defined in Regulation S under theUnited States Securities Act of 1933, as amended (the “Securities Act”) (“U.S. Person”), or in anyother jurisdiction in which such an offer would be illegal. OGI’s shares have not been and will not beregistered under the Securities Act. We seek safe harbour. This document may not be reproduced,further distributed or published in whole or in part by any other person. This document may only bedisseminated or transmitted into any jurisdiction in compliance with, and subject to, applicablesecurities laws. Readers are required to ensure their compliance with applicable securities laws.

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Organigram at a Glance

• Leading licensed producer of premium quality product for Medical & Adult Recreational Markets

• Indoor facility in Moncton, NB with unique three-level cultivation technology

• Sales to all 10 Canadian provinces

• Focused on continuous improvement, innovation and automation

Recent Highlights

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Pre-rolls 7% & other

• Launched our first value offering of dried flower in a large size format of 28g into the fast-growing value segment of the adult-use recreational market

• Revitalizing overall product portfolio with 28 SKUs launching from July to September 2020

• Reduced the Company’s workforce by ~25% in June 2020 to better align with prevailing market conditions

• Generated positive cash flow from operations of $8.5M in Q3 Fiscal 2020 and ended the quarter with only modest remaining expansion capex of $4M to complete plans for the Moncton Campus Facility

• Secured the Company’s largest international deal to date to supply one of Israel’s largest and most established medical cannabis producers, Canndoc Ltd. with up to 6,000kg of dried flower in a multi-year agreement

(1.0)19.9

FY-2018 FY-2019

($M)

NET REVENUE GROSS MARGINbefore FV CHANGES to BIO ASSETS & INVENTORIES

• 2019 net revenue grew over 6 times or 547% from 2018 on the legalization of adult-use recreational cannabis in Canada

• Gross margin before fair value changes to bio assets and inventory increased 575% to 47% from 2018

• 2019 positive adjusted EBITDA margin2 of 25% as a percentage of net revenue

• 2019 SG&A3 at 41% of net revenue

Fiscal 2019 Financial Results

37.1

1.0

8.824.826.9

12.4

1. Based on the Company’s analysis of available data including, but not limited to, market share data from select provinces and various public data 2. Adjusted EBITDA is a non-IFRS measures with no standardized meaning under IFRS. See Company’s Q4 2019 MD&A.3. Sales & Marketing and General & Administrative excluding share-based compensation 4. From continuing operations

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12.4

80.4

FY-2018 FY-2019

($M)

5.6

37.94…

47%

FY-2018 FY-2019

($M and %)

• 2019 net loss of $9.5M or $0.07 per share (fully diluted) largely due to fair value changes to bio assets and inventory

POSITIVE ADJUSTED EBITDA2

NET INCOME (LOSS)4

Three Level Indoor Cultivation Technology• 3 level growing optimizes

footprint

• Control critical facets of environment with state-of-the-art technology and innovation

• Data driven decisions

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Phase 4 Expansion Of Moncton Campus

1 Target production capacity once licensed and fully operational; several factors can cause actual capacity and costs to differ from estimates. See “Risk Factors” in the Company’s Q3 2020 MD&A.

• Phase 4 divided up into 3 stages – 4A, 4B and 4C; Phases 4A and 4B completed

• Adjusting production methods to achieve higher THC levels which has reduced the yield per plant by ~20% - revised target production capacity is now estimated at 70,000 kg/yr1

(from 89,000 kg/yr)

• Expect to cultivate below target production capacity for the foreseeable future based on lower than expected consumer demand

• Made decision to indefinitely delay completion of Phase 4C, as originally contemplated, to:

• Prioritize and effectively manage cash flow; and• Potentially use the space in Phase 4C for other opportunities

• Estimated capital cost to complete 4C such that it can be occupied, was ~$1M1 at the end of Q3 Fiscal 2020

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• 56,000 square feet within existing Moncton Campus facility being refurbished for:

• An edibles and derivative production facility; and• Additional extraction capacity (CO2 and

hydrocarbon)

• Estimated capital cost to complete was ~$3M1 at end of Q3 Fiscal 2020, largely related to the installation of certain equipment in the edibles and extraction areas

Phase 5 Refurbishment of Moncton Campus For Edibles and Derivative Product Facility and More Extraction

8 1 Several factors can cause actual capacity and costs to differ from estimates. See “Risk Factors” in the Company’s Q3 2020 MD&A.8

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Adult Recreational Brands

Pricing Segment

Deep Value Value Value Mainstream Mainstream Premium

Available /Planned Formats

Pre-Milled, Pre-Rolled Multipacks

Whole Flower, Pre-Roll, Edibles,

Vape PensWhole Flower Organic Whole Flower

Whole Flower, Pre-Roll, Oil,

Edibles,Vape Pens

Large Whole Flower

Tangible Brand Attributes

Whole-flower-flavour, high-potency value Price Leader

Consistent Value Offering

(Strain Specific)

Organically Grownin Living Soil

High THCPremium Sorted Flower

Robust Product Offering

Top FlowerCraft Cured

Hand Trimmed

Note: “Buds” is interim brand name and logo and OGI is developing new permanent brand name and logo.

• Launched new brand, SHRED in mid September 2020 - a dried flower product with THC of 18% or more that is pre-shredded for consumer convenience and Organigram’s most affordable option on a per gram basis (of pre-rolls and dried flower products)

REC 1.0 - New Product Launches and Line ExtensionsPRODUCTS LAUNCH TIMING

VALUE in large format segment

7g & 15g Trailblazer line extensions Launched early July 2020

VALUE in large format segment

Buds 28g launch in Ontario(already in Alberta and Atlantic Canada)

Launched mid July 2020

NEW SKUs for ourmost popular strains

3-pack Pre-Rolls (3 strains)1g & 3.5g Limelight line extension Launched June 2020

NEW CULTIVARS with Higher THC

3 new genetics- The General (Grapefruit GG4), Chemdog & limited time offer: Samurai Spy (Ninja Fruit)

Launched in early Aug2020

NEW VALUE BRAND:SHRED

Pre-shredded for convenienceat OGI’s most affordable price(per gram basis)

Launched mid Sept 202010 10

• As planned, began shipping Trailblazer Torch vape cartridges in December 2019

• Started shipping Edison + Feather ready-to-go distillate pens in February 2020

• Selected as one of the Canadian partners for PAX ERA, the premium closed loop vaporizer system created by PAX Labs, Inc.

• PAX Labs, Inc. - a leader in the design and development of premium app-controlled vape technologies for cannabis

• Selected as exclusive Canadian supplier of Feather Company’s industrial design-patented vaporizer hardware and technology

• Launched PAX ERA distillate cartridges in April 2020

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REC 2.0OGI Vaporizer Pen Portfolio

• ~$15M investment in high-speed, high-capacity, fully-automated production line that includes advanced engineering, robotics, high-speed labeling, automated carton packing

• Commissioning of the production line completed in January 2020

• Shipped first product in February 2020, Edison Bytes, premium truffles in milk and dark chocolate available in 2 with 5mg of THC each or 1 with 10mg

• Launched Trailblazer Snax, our value segment cannabis-infused chocolate bar in late July 2020; to be available in two flavours, mocha and mint chocolate with 10 mg of THC in every 42g bar

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REC 2.0 Cannabis-infused Chocolates

REC 2.0Proprietary Nano-Emulsification TechnologyDissolvable Powder Product• Proprietary nano-emulsion technology, developed by internal R&D

team

• An expected initial absorption of cannabinoids in 10-15 minutes once ingested by adding to a liquid

• Anticipated stability to temperature variations, mechanical disturbance, salinity, pH and sweeteners as well as being shelf stable, water-compatible, and unflavoured

• Offers consumers a measured dose of cannabinoids to add to a beverage of their choice while also offering discretion, portability and shelf life of a dry powder

• Expect to launch in Q1 Fiscal 2021

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Award-winning Products and Brands

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Won Top Product Award in the High THC Bottled Oil Category for our medical product, Rossignol

Runner-up for medical High THC Bottled Oil Banook and recognized in 7 other categories

Leafly Readers Choice Award Winners

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Products from our Edison Cannabis Co. Brand have been chosen as the best in Canada!

TOP CBD OILEDISON CBD

TOP THC OILEDISON SATIVA

TOP THC-DOMINANT FLOWER LA STRADA

TOP PRE-ROLLEL DORADO PRE-ROLL

Top Licensed Producer, #2The Edison Cannabis Co

Mentions: Top THC-Dominant Flower, #7 Rio Bravo

Top Pre-Roll, #4 Edison La Strada

Top THC-Dominant Flower, #8 Lola Montes

Top Balanced Oil, #3Edison 5:5

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Biosynthetic Cluster A physically clustered group of two or more genes in a particular genome that together encode a biosynthetic pathway for the production of a specialized metabolite.

i1

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INSERT BIOSYNTHETIC CLUSTER INTO DNA VECTOR

The process is conducted at a large scale, resulting in materials that can be further processed into purified cannabinoids

GENOME ENGINEERING OF HOST

DNA is inserted into the bacteria, where it provides

instructions to produce cannabinoid compounds(s).

How it works?Biosynthesis can be used to produce cannabinoids that are biologically identical to those produced by the plant itself.

BIOSYNTHESISA proprietary cannabinoid

manufacturing system that can product rare

cannabinoids.

Investment in Disruptive Technology-Biosynthesis

• Investment in Hyasynth, a biotech company and leader in the field of cannabinoid science and biosynthesis

• Hyasynth using a disruptive technology – biosynthesis - to naturally produce cannabinoids without growing cannabis plants

• Process has the potential to create a scalable supply of pure cannabinoids at a fraction of the cost of traditional cultivation

• Process begins by inserting genes into the yeast’s natural metabolism causing the production of cannabinoid precursors by the yeast

• Hyasynth has developed patent-pending enzymes that allow for the production of CBG, CBD and THC from the precursor molecules

• On September 28, 2002, Hyasynth announced it was the first ever company to sell CBD produced and extracted

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Pre-rolls 7% & other

• On June 9, 2020, entered into a multi-year agreement for supply of dried flower to one of Israel’s largest and most established medical cannabis producers, Canndoc Ltd., a sub of InterCure Ltd. (TASE: INCR/INCR.TA) and a pioneer in pharmaceutical-grade cannabis for > 12 years

• Canndoc’s GMP-approved medical cannabis products are sold in pharmacies in Israel, and it holds international cultivation and distribution agreements in the EU and Canada

• Under the terms, OGI to supply up to 6000kg of dried flower to Canndoc for processing and distribution into Israeli medical market

• 3000kg of dried flower is guaranteed by December 31, 2021 and at Canndoc’s option, OGI may provide an additional 3,000kg during the same time period subject to certain conditions

• Tiered pricing scheme applies and will vary depending on factors such as potency and product mix• The Agreement1 also contemplates an opportunity for OGI to launch branded medical products

with Canndoc in the Israeli and EU markets, and grants exclusivity and related rights to Canndocwithin the Israel market for a period of approximately 7.5 years

OGI’s Largest International Deal to Date

1. Activities under the Agreement are subject to compliance with all applicable laws, including receipt of all requisite approvals from Health Canada, the Israeli Ministry of Health, and any other applicable regulatory authorities.

Liquidity and Capital

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Pre-rolls 7% & other

• Generated $8.5M in positive cash flow from operations in Q3 Fiscal 2020

• Cash and short-term investments of $44.8M as at end of Q3 Fiscal 2020

• Only modest remaining expansion capex of ~$4M as at the end of Q3 Fiscal 2020 to complete plans for Phases 4 and 5 of the Moncton Campus Facility

• As at July 17, 2020, ~$78M in cash and short-term investments, excluding the $8M of restricted investment (GIC)

• Successfully completed an Amendment to the Credit Facility Agreement with BMO and the syndicate of lenders in Q3 Fiscal 2020 and subsequently drew the remaining $30M on term loan in June 2020

• Completed the ATM equity program, announced in April 2020, for total gross proceeds of ~$49M

• During Q3 Fiscal 2020, issued ~14.0M common shares for gross proceeds of $31.1M at a weighted average price of $2.21 per common share and net proceeds of $29.8M

• Subsequent to Q3 Fiscal 2020, issued ~7.0M common shares for gross proceeds of $17.9M at a weighted average price of $2.54 per common share

Executive Team

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Julie ChamberlainPaolo DeLuca Tim Emberg Helen Martin Cameron Bishop Matt RogersVP, Marketing

• Accomplished marketing professional known for her ability to translate market and consumer insights into strategic brand opportunities, relevant products, and powerful campaigns.

• Prior to OGI, Julie spent over a decade at L’Oréal Group, most recently as General Manager, NYX Professional Makeup Canada and Vice President, Marketing for L'Oréal Paris USA.

Chief Strategy Officer

• More than 20 years of diversified financial business experience in senior financial, investor relations and accounting roles.

• Prior experience includes roles at West Face Capital, Meridian LNG, Potash Ridge, C.A. Bancorp and TD Securities.

SVP, Sales

• A seasoned, bilingual sales, marketing and market access and regulatory leader with proven experience in healthcare, over-the-counter and CPG organizations.

• Prior experience includes roles at Roche Canada, Jamieson Laboratories and Frito-Lay Canada.

Greg EngelChief Executive Officer

• Seasoned executive with 30 years of Canadian and international experience within the pharma, biotech, cannabis and CPG industries.

• Prior to OGI, Gregory was most recently the CEO of Tilray.

SVP, Strategic & Legal Affairs

• A seasoned legal professional with experience spanning private practice corporate and securities law.

• Prior to OGI, Helen served for four years as the COO of a TSX-listed issuer within the financial sector.

VP, Public Affairs & Stakeholder Relations

• A public affairs expert with over 20 years of experience in government affairs and stakeholder relations.

• Prior to OGI, Cameron led government affairs for Tilray and held various health policy and government relations roles outside of the cannabis industry.

VP, Operations

• As one of Organigram’s first employees from 2015, Matt has held various operational roles within the company.

• Matt brings continuous improvement, operational analytics and cost control experience from his prior roles at GanongBros., Canada’s oldest candy company.

Derrick WestChief Financial Officer

• Served as the Chair of the Audit Committee of OGI's Board from December 2017 to February 2020 and more recently served as part of the Investment Committee.

• Prior to OGI, Derrick - a chartered accountant -served in various CFO and executive financial and accounting roles.

OGI INVESTORS’ PRESENTATION |

APPENDIX

Select Key Q3 Fiscal 2020 Financial Metrics

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1. Excludes noncash share based compensation and impairment to property plant and equipment2. Adjusted EBITDA is a non-IFRS measure- please see Company’s Q3 2020 MD&A for definition and reconciliation to IFRS* not meaningful

($ IN 000S) UNLESS OTHERWISE INDICATED Q3 2020 Q3 2019 % CHANGE

Gross revenue 22,241 30,361 -27%

Excise taxes (4,220) (5,611) -25%

Net revenue 18,021 24,750 -27%

Cost of sales 44,375 12,473 256%

Gross margin before fair value changes to biological assets & inventories sold (26,354) 12,277 -315%

Fair value changes to biological assets & inventories (23,862) (12,456) 92%

Gross margin (50,216) (179) nm*

Sales & marketing and general & administrative expenses (“SG&A”)1 10,258 9,063 13%

Net loss (89,323) (10,180) 777%

Adjusted EBITDA2 (24,739) 7,712 -421%

Net cash provided by operating activities 8,527 3,006 184%

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($ IN 000S UNLESS OTHERWISE INDICATED) 31-MAY-20 31-AUG-19 % CHANGE

Cash & Short-Term Investments 44,777 47,935 -7%

Biological Assets & Inventories 100,634 113,796 -12%

Other Current Assets 17,226 34,550 -50%

A/P and Other Current Liabilities 31,015 43,864 -29%

Working Capital 131,622 152,417 -14%

Property, Plant & Equipment 249,719 218,470 14%

Long-Term Debt 78,884 46,067 71%

Total Assets 433,677 428,525 1%

Total Liabilities 112,971 101,519 11%

Shareholders’ Equity 320,706 327,006 -2%

Select Key Q3 Fiscal 2020 Balance Sheet Metrics

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Select Key Fiscal 2019 Financial Metrics

1. Sales and marketing and general and administrative expenses (excludes noncash share based compensation and impairment loss)2. Adjusted EBITDA is a nonIFRS measure –please see Company’s Q4 2019 MD&A.

(in 000s) unless indicated FISCAL 2019 FISCAL 2018 % CHANGEGross revenue 97,547 12,429 685%

Excise taxes (17,134) - n/m

Net revenue 80,413 12,429 547%

Cost of sales (incl. indirect production) 42,521 6,814 524%

Gross margin (GM) before FV changes 37,892 5,615 575%

FV changes to bio assets & inventories 10,577 46,018 (77)%

Gross margin 48,469 51,633 (6)%

SG&A1 33,218 10,989 202%

Net income (loss) from continuing ops (9,504) 22, 124 n/m

Select Non-IFRS Metrics

GM before FV changes as % of net revenue 47% 45% 2%

SG&A as a % of net revenue 41% 88% (47)%

Adjusted EBITDA2 19,900 (1,003) n/m

Adjusted EBITDA as a % of net revenue2 25% n/m n/m

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Select Key Fiscal 2019 Balance Sheet Metrics

(in 000s) FISCAL 2019 FISCAL 2018 % CHANGECash & Short-Term Investments 47,935 130,064 (63%)

Biological Assets & Inventories 113,796 64,827 76%

Other Current Assets 34,550 8,323 315%

Accounts Payable and Other Current Liabilities 43,864 11,250 290%

Working Capital 152,417 191,964 (21)%

Property, Plant & Equipment 218,470 98,639 122%

Long-Term Debt 46,067 98,473 (53)%

Total Assets 428,525 302,567 42%

Total Liabilities 101,519 117,973 (14)%

Shareholders’ Equity 327,006 184,594 77%