11:46 AM EDT, 07/24/2024 (MT Newswires) -- Organigram Holdings ( OGI ) , a licensed producer of cannabis, on Wednesday said it completed an early partial funding of its third and final tranche investment in Phylos Bioscience, a U.S. cannabis genetics and seeds company.

Including the US$1 million partial third-tranche advance, Organigram ( OGI ) has now advanced US$7 million to Phylos in the form of a convertible loan funded in tranches.

The rest of the third tranche will be advanced to Phylos conditional upon successful completion of an expanded milestone by March 31, 2026.

The maturity date of the convertible loan is May 25, 2028, subject to one-year extensions and certain conditions.

The partial third tranche investment is expected to result in the expansion of Organigram's ( OGI ) product portfolio to address consumer demand for unique and differentiated aromas and flavors.

Phylos is required to deliver 21 unique auto-flower seed varietals for testing and phenotyping by Organigram ( OGI ) by Sept. 30, followed by a second cohort of 21 auto-flower seed varietals to be delivered by Jan. 31, 2025.

Organigram ( OGI ) also received an expanded genetics license from Phylos that, in addition to THCV, includes access to high-potency rare cannabinoids, such as CBG, CBC and CBDV seed based cultivars.

Organigram ( OGI ) has exclusive rights in Canada until May 2028 to commercialize THCV derived from Phylos' cultivars.

"The continuous development and milestone achievements are instrumental in expanding and differentiating Organigram's ( OGI ) portfolio of seed-based cultivars, which are currently being scaled and have started to deliver tangible benefits to the organization," said Borna Zlamalik, senior vice president of research and development and innovation at Organigram ( OGI ).

Organigram ( OGI ) shares were last seen down $0.115 to $2.315 on the Toronto Stock Exchange.

Price: 2.32, Change: -0.12, Percent Change: -4.73