Organigram leans into THCV products with Phylos

Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI) is leaning into its THCV product line from Phylos Bioscience Inc. as the company provides more investment dollars while it ups the milestone goals. Organigram said it finished early partial funding of its final third tranche investment into Phylos, with the remaining portion of the final tranche to be funded upon completion of the newly expanded final milestone.

Organigram now wants Phylos to deliver 21 unique auto-flower seed varietals for testing and phenotyping by Organigram no later than September 30, 2024, followed by a second cohort of 21 auto-flower seed varietals to be delivered no later than January 31, 2025.

“We are pleased with the progress we’ve achieved to date and the benefits that have stemmed from this strategic investment. The continuous development and milestone achievements are instrumental in expanding and differentiating Organigram’s portfolio of seed-based cultivars, which are currently being scaled and have started to deliver tangible benefits to the organization,” says Borna Zlamalik, Senior Vice President, R&D and Innovation at Organigram.

THCV cannabis is characterized by inducing a more alert and energizing version of a cannabis high. It is sometimes called diet weed. Research has also shown that these cannabinoids may regulate blood sugar levels and reduce insulin resistance. Most cannabis strains only contain a trace amount of THCV and the THCV heavy strains have proven difficult to grow and process. The isolating process to achieve high THCV levels has been elusive for many growers.

Organigram said in a statement that it has exclusive rights in Canada (until May 2028) to commercialize THCV derived from Phylos’ cultivars, including Get S**T Done (1:3 THC: THCV) and Joyride (1:1 THC: THCV), two popular cultivars with THCV concentrations of 16+% that are higher than those available elsewhere in the market.

Organigram was one of the first cannabis producers to launch THCV products in Canada with SHRED’ems late last year. Organigram said it is currently the only cannabis producer in Canada to offer whole-flower derived THCV products in the pre-milled and pre-roll categories.

Organigram’s THCV portfolio includes:

In addition to the auto-flower seeds, Organigram received an expanded genetics license from Phylos that, in addition to THCV, includes access to high-potency CBG, CBC, and CBDV seed-based cultivars.

Organigram has now advanced roughly $7 million to Phylos as a convertible loan funded in tranches. The balance of the third tranche, an additional $1 million, will be advanced to Phylos conditional upon completing the expanded milestone no later than March 31, 2026.