Pot stocks are high on legalization in states

• Toronto Star
• March 27, 2021

Cannabis stocks are on pace for their first back-to-back quarterly gains in four years, and investors are optimistic the rally has legs as states like New York move to fast-track legalization.

Bloomberg Intelligence’s Global Cannabis Competitive Peers Index has gained 33 per cent so far this year, adding to its 45 per cent surge in the fourth quarter of 2020. That consecutive increase is the first and also the biggest since 2017, before recreational marijuana use was legalized in Canada.

Tilray Inc.’s stock leads the index this quarter, gaining over 170 per cent, while Organigram Holdings Inc. surged over 170 per cent during the same period, aided by a $175-million (U.S.) investment from British American Tobacco Plc. Aphria Inc. has jumped 157 per cent.

The group got a boost from Reddit traders last month, with retail investors piling into U.S.listed shares of companies like Tilray and Sundial Growers Inc. Sales for the sector were up 13 per cent in the fourth quarter of 2020, according to data compiled from the Innovation Labs Cannabis Index, and quarterly sales are expected to keep rising this year.

Prospects for federal legislation such as the Secure and Fair Enforcement (SAFE) Banking Act, which would allow U.S. banks to work with state-legal cannabis companies, is driving some of the momentum in equities. But state-by-state legalization is the key factor right now, according to Charles Taerk, chief executive officer of Faircourt Asset Management.

“If you really take a look at the state-by-state growth, the total addressable market in the U.S. is growing while we’re waiting for legislation at the federal level,” Taerk said.

Bounty Contest Results Re-enforced IronCAP's Resilience

 TORONTO, ON / ACCESSWIRE / March 25, 2021 /01 Communique Laboratory Inc. (TSXV:ONE)(OTCQB:OONEF) (the "Company") is pleased to announce that its quantum-safe encryption, IronCAP™, successfully survived a global Bounty Contest challenge. The Bounty Contest was exclusively sponsored by PwC China. 807 cybersecurity and quantum experts attempted to crack IronCAP™'s quantum-safe encryption during the one-month CAD$100,000 Bounty Contest. No contestants managed to break the code and IronCAP™'s encryption has yet again proven its resilience and robustness.

"We believe IronCAP™'s quantum-safe encryption solution is the best-in-class cryptography solution and it is the only quantum-safe encryption product we are aware of to survive a challenge of this scale and intensity," says Andrew Cheung, 01 Communique's CEO. "We would like to thank all the expert contestants who have participated and helped to verify our technology. My special thanks to PwC, China whose contribution and support was key to the success of this event."

Samuel Sinn, Partner, Cybersecurity & Privacy Services, PwC China stated: "We are pleased to see that no one was able to break the IronCAP™ product amid the huge number of participants in our bounty contest this time. It objectively demonstrated that IronCAP™ is a robust product to protect the systems from cyber-attacks. We are also confident that IronCAP™ will also be able to combat the cyber threats when the Q-Day arrives."

Businesses and Governments are now very much aware of and preparing for the upcoming quantum threat that has the potential to eviscerate present classical encryption. We look forward to working with leaders who have the foresight to champion early adoption of IronCAP™. Their effort will no doubt be rewarded by best-in-class protection against the detrimental quantum attack.

For information on how IronCAP™ can help your company or clients become quantum-safe, please visit our website: www.ironcap.ca or contact the Company at sales@ironcap.ca.

About IronCAP™ and IronCAP X™:

IronCAP™ is at the forefront of the cyber security market and is designed to protect our customers from cyber-attacks. IronCAP™'s patent-pending cryptographic system is designed to protect users and enterprises against the ever-evolving illegitimate and malicious means of gaining access to their data today as well as in the future with the introduction of powerful quantum computers. Based on improved Goppa code-based encryption it is designed to be faster and more secure than current standards. It operates on conventional computer systems, so users are protected today while being secure enough to safeguard against future attacks from the world of quantum computers. An IronCAP™ API is available which allows vendors of a wide variety of vertical applications to easily transform their products to ensure their customers are safe from cyber-attacks today and from quantum computers in the future.

IronCAP X™, a cybersecurity product for email/file encryption, incorporating our patent-pending technology for commercial. The new product has two major differentiations from what is in the market today. Firstly, many offerings in today's market store users secured emails on email-servers for recipients to read, making email-servers a central target of cyber-attack. IronCAP X™, on the other hand, delivers each encrypted message end-to-end to the recipients such that only the intended recipients can decrypt and read the message. Consumers' individual messages are protected, eliminating the hackers' incentive to attack email servers of email providers. Secondly, powered by our patent-pending IronCAP™ technology, we believe IronCAP X™ is the world's first quantum-safe end-to-end email encryption system; secured against cyberattacks from today's systems and from quantum computers in the future. Consumers and businesses using IronCAP X™ will be protected by tomorrow's cybersecurity today.

About 01 Communique

Established in 1992, 01 Communique (TSX-V: ONE; OTCQB: OONEF) has always been at the forefront of technology. The Company's cyber security business unit focuses on post-quantum cybersecurity with the development of its IronCAP™ technology. IronCAP™'s patent-pending cryptographic system is an advanced Goppa code-based post-quantum cryptographic technology that can be implemented on classical computer systems as we know them today while at the same time can also safeguard against attacks in the future post-quantum world of computing. The Company's remote access business unit provides its customers with a suite of secure remote access services and products under its I'm InTouch and I'm OnCall product offerings. The remote access offerings are protected in the U.S.A. by its patents #6,928,479 / #6,938,076 / #8,234,701; in Canada by its patents #2,309,398 / #2,524,039 and in Japan by its patent #4,875,094. For more information, visit the Company's web site at www.ironcap.ca and www.01com.com.

PwC - Mainland China, Hong Kong SAR and Macau SAR

PwC Mainland China, Hong Kong SAR and Macau SAR work together on a collaborative basis, subject to local applicable laws. Collectively, we have over 800 partners and more than 20,000 people in total.

We provide organisations with the professional service they need, wherever they may be located. Our highly qualified, experienced professionals listen to different points of view to help organisations solve their business issues and identify and maximise the opportunities they seek. Our industry specialisation allows us to help co-create solutions with our clients for their sector of interest.

We are located in these cities: Beijing, Shanghai, Hong Kong, Shenyang, Tianjin, Dalian, Jinan, Qingdao, Zhengzhou, Xi'an, Nanjing, Hefei, Suzhou, Wuhan, Chengdu, Hangzhou, Ningbo, Chongqing, Changsha, Kunming, Xiamen, Guangzhou, Shenzhen, Macau, Haikou, Zhuhai and Guiyang.

PwC - Globally

At PwC, our purpose is to build trust in society and solve important problems. We are a network of firms in 155 countries with more than 284,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com.

PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details.

Cautionary Note Regarding Forward-looking Statements

Certain statements in this news release may constitute "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this news release, such statements use such words as "may", "will", "expect", "believe", "anticipate", "plan", "intend", "are confident" and other similar terminology. Such statements include statements regarding the business prospects of IronCAP™ and IronCAP X™, the future of quantum computers and their impact on the Company's product offering, the functionality of the Company's products and the intended product lines for the Company's technology. These statements reflect current expectations regarding future events and operating performance and speak only as of the date of this news release. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the matters discussed in the forward-looking statements, including, but not limited to, a delay in the anticipated adoption of quantum computers and a corresponding delay in Q day, the ability for the Company to generate sales, and gain adoption of, IronCAP™ and IronCAP X™, the ability of the Company to raise financing to pursue its business plan, competing products that provide a superior product, competitors with greater resources and the factors discussed under "Risk and Uncertainties" in the company's Management`s Discussion and Analysis document filed on SEDAR. Although the forward-looking statements contained in this news release are based upon what management of the Company believes are reasonable assumptions, the company cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this news release, and the company assumes no obligation to update or revise them to reflect new events or circumstances.

Neither TSX Venture Exchange ("TSX-V") nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

INVESTOR CONTACT:

Brian Stringer
Chief Financial Officer
01 Communique
(905) 795-2888 x204
Brian.stringer@01com.com

SOURCE: 01 Communique Laboratory, Inc.

01 Communique Signs Partnership Agreement with ISA Cybersecurity to Sell IronCAP(TM) Technology

TORONTO, ON / ACCESSWIRE / March 18, 2021 / 01 Communique Laboratory Inc. (TSXV:ONE)(OTCQB:OONEF) (the "Company") one of the first-to-market, enterprise level cybersecurity providers for the quantum computing era, is pleased to announce that the Company has signed a partnership agreement with ISA Cybersecurity. ISA Cybersecurity is Canada's leading cybersecurity-focused company, with nearly three decades of experience delivering cybersecurity services and people organizations and governments have come to trust.

Andrew Cheung, CEO of 01 Communique, commented, "We are pleased to have a partnership agreement with ISA Cybersecurity as they are revolutionizing cybersecurity through service delivery and technology integrations to enable clients to secure their assets. As there is increasing concern about privacy and the protection of personal information, it is important to understand the impact of big cybersecurity threats and what can be done to keep enterprises and individuals secure. Our IronCAP™ technology is designed to operate on today's conventional computer systems and safeguard against future quantum computer attacks."

Jasper De Man, Director of Strategic Alliances at ISA Cybersecurity, stated, "At ISA Cybersecurity, our vision is to help create a world in which everyone is safe from cyber threats. The pace of technology change is accelerating as we enter the quantum era, so we are happy to partner with 01 Communique who are leading the way in securing the future of computing. Together, we protect our customers so that they can securely and safely focus on supporting their employees and clients."

About IronCAP™ and IronCAP X™

IronCAP™ is at the forefront of the cyber security market and is designed to protect our customers from cyber-attacks. IronCAP's patent-pending cryptographic system is designed to protect users and enterprises against the ever-evolving illegitimate and malicious means of gaining access to their data today as well as in the future with the introduction of powerful quantum computers. Based on improved Goppa code-based encryption it is designed to be faster and more secure than current standards. It operates on conventional computer systems, so users are protected today while being secure enough to safeguard against future attacks from the world of quantum computers. An IronCAP™ API is available which allows vendors of a wide variety of vertical applications to easily transform their products to ensure their customers are safe from cyber-attacks today and from quantum computers in the future.

IronCAP X™, a cybersecurity product for email/file encryption, incorporating our patent-pending technology for commercial. The new product has two major differentiations from what is in the market today. Firstly, many offerings in today's market store users secured emails on email-servers for recipients to read, making email-servers a central target of cyber-attack. IronCAP X™, on the other hand, delivers each encrypted message end-to-end to the recipients such that only the intended recipients can decrypt and read the message. Consumers' individual messages are protected, eliminating the hackers' incentive to attack email servers of email providers. Secondly, powered by our patent-pending IronCAP™ technology, we believe IronCAP X™ is the world's first quantum-safe end-to-end email encryption system; secured against cyberattacks from today's systems and from quantum computers in the future. Consumers and businesses using IronCAP X™ will be protected by tomorrow's cybersecurity today.

About ISA Cybersecurity

ISA Cybersecurity is Canada's leading cybersecurity-focused company, with nearly three decades of experience delivering cybersecurity services and people you can trust. ISA Cybersecurity's vision is to help create a world in which everyone is safe from cyber threats. ISA Cybersecurity is recognized by IDC MarketScape as a Major Player in Canadian Security Services, with offices in Toronto, Ottawa, and Calgary. ISA Cybersecurity provides clients with advisory and technical services on complex and evolving issues related to cybersecurity. ISA Cybersecurity operates multiple 24/7/365, SOC 2 Type 2 security operations centres. Learn more at www.isacybersecurity.com.

About 01 Communique

Established in 1992, 01 Communique (TSX-V: ONE; OTCQB: OONEF) has always been at the forefront of technology. The Company's cyber security business unit focuses on post-quantum cybersecurity with the development of its IronCAP™ technology. IronCAP's patent-pending cryptographic system is an advanced Goppa code-based post-quantum cryptographic technology that can be implemented on classical computer systems as we know them today while at the same time can also safeguard against attacks in the future post-quantum world of computing. The Company's remote access business unit provides its customers with a suite of secure remote access services and products under its I'm InTouch and I'm OnCall product offerings. The remote access offerings are protected in the U.S.A. by its patents #6,928,479 / #6,938,076 / #8,234,701; in Canada by its patents #2,309,398 / #2,524,039 and in Japan by its patent #4,875,094. For more information, visit the Company's web site at www.ironcap.ca and www.01com.com.

OGI Sells 19.9% To British American Tobacco Company

 

Organigram signs product dev deal, financing with BAT

2021-03-11 07:28 ET - News Release

Mr. Greg Engel reports

ORGANIGRAM AND BAT FORM PRODUCT DEVELOPMENT COLLABORATION -- INCLUDES STRATEGIC INVESTMENT FROM BAT FOR 19.9% EQUITY INTEREST

Organigram Holdings Inc. has arranged a $221-million strategic investment from a wholly owned subsidiary of BAT. The BAT subsidiary has subscribed for approximately 58.3 million common shares of OGI, which represents a 19.9% equity interest1 on a post-transaction basis for total proceeds of approximately C$221 million ("Investment Proceeds") at a price per share of C$3.792, based on a five-day volume weighted average price on the TSX ending March 9, 2021.

Organigram Inc., a leading licensed cannabis producer and a subsidiary of Organigram Holdings Inc. (together, "Organigram" or "the Company"), and BAT have also entered into a Product Development Collaboration Agreement (the "PDC Agreement") pursuant to which a "Center of Excellence" will be established to focus on developing the next generation of cannabis products with an initial focus on CBD. The Center of Excellence will be located at Organigram's indoor facility in Moncton, New Brunswick, which holds the Health Canada licenses required to conduct research and development ("R&D") activities with cannabis products. Both companies will contribute scientists, researchers, and product developers to the Center of Excellence which will be governed and supervised by a steering committee consisting of an equal number of senior members from both companies. Under the terms of the PDC Agreement, both Organigram and BAT have access to certain of each other's intellectual property ("IP") and, subject to certain limitations, have the right to independently, globally commercialize the products, technologies and IP created by the Center of Excellence pursuant to the PDC Agreement.

"This is a tremendous milestone in the evolution of Organigram. It is instrumental in advancing our commitment to offering consumers innovative cannabis products and to furthering our long-term international strategy," said Greg Engel, Chief Executive Officer of Organigram. "We have been extremely selective about aligning with a strategic partner and, in BAT, we've found a leading consumer goods business with sophisticated management, innovative product platforms, an impressive dedication to research and development, deep consumer insights, regulatory expertise and a commitment to responsible stewardship and consumer safety among many other enviable attributes. This collaboration is the culmination of extensive discussions and workshops and in-depth due diligence."

Dr. David O'Reilly, Director, Scientific Research at BAT, commented: "Today's announcement underscores BAT's commitment to accelerating our transformation and building A Better Tomorrow. Our multi-category, consumer-centric approach, which is key to our transformation, aims to provide choice and meet the evolving needs of adult consumers. Choice that provides reduced risk alternatives2 to combustible cigarettes, as well as going beyond tobacco and nicotine into new and exciting areas of product innovation.

We believe this collaboration has significant potential to enhance our activities, allowing us to combine our world-class expertise while enabling scientists from both BAT and Organigram to work closely together and share information real-time. We know that in R&D this is how you make real breakthroughs and accelerate progress.

We have been impressed by the strong management team and culture at Organigram. This collaboration aligns with our long-term strategy and will enable us to work with Organigram at an R&D level, as well contributing to their wider operations."

Strategic Rationale for the Deal

BAT's investment in Organigram and the PDC Agreement is expected to strengthen Organigram's balance sheet, accelerate its R&D program and product development activities and bolster its ability to enter the U.S. and other international markets. "In our view, the cannabis industry is still in the nascent stages of product development. We believe that product innovation backed by core fundamental R&D is necessary to establish a long-term competitive advantage in the cannabis industry," stated Paolo De Luca, the Company's Chief Strategic Officer. "This strategic collaboration strengthens our ability to deliver innovative, differentiated products that appeal to adult consumers and we expect it to be transformational for Organigram and its shareholders."

Organigram believes BAT's investment and the PDC will benefit the Company as follows:

• Accelerates and strengthens Organigram's R&D and product development activities, including granting access to certain BAT-owned IP. The Center of Excellence provides Organigram the opportunity to closely collaborate with BAT, a leading global consumer business with extensive expertise and experience in R&D, on the development of innovative and differentiated cannabis products, IP and technologies. The significant injection of capital from BAT also enables Organigram to further invest in its own R&D and product development activities. In addition, Organigram will gain access to certain BAT IP for the purpose of undertaking R&D activities under the PDC Agreement.
• Raises significant capital to invest in growth opportunities, including entering the United States and other international markets. With the significant capital injection, Organigram is even better positioned to expand into the U.S. and further international markets at the appropriate time and subject to applicable law. Upon closing, Organigram will have pro-forma cash and short-term investments of approximately C$296 million (of which approximately C$30 million will be reserved in order to satisfy certain of Organigram's obligations under the PDC Agreement and the balance of which can be used, among other things, for growth opportunities and other strategic investments including advancing Organigram's international strategy). Under the PDC Agreement, the Company will be granted a worldwide, royalty-free, sub-licensable, perpetual license to exploit IP developed under the PDC in any field. This license which is non-exclusive outside of Canada and sole in Canada will also enhance Organigram's ability to enter markets outside of Canada, including through sublicensing arrangements with established operators.
• Allows Organigram to leverage BAT's expertise for its wider operations through the Centre of Excellence and BAT's representation on Organigram's Board of Directors ("Board"). BAT is a leading consumer goods business with tremendous expertise and experience accumulated over more than a century in research and development and product innovation. Organigram will be provided direct access to BAT's expertise through the Center of Excellence staff seconded from BAT (including members of the steering committee which will oversee the Center of Excellence, as well as a group of scientists, researchers, and product developers).

BAT is also entitled to add two Board members to Organigram's Board.? At closing, Organigram added one BAT nominee, Mr. Jeyan Heper, to its Board and another nominee is expected to be added in the near term.? Mr. Heper, who is a Group Category Director at BAT, has over 23 years of diverse management, strategic leadership, and mergers and acquisitions experience at global companies including BAT, Procter & Gamble, Danone and LifeStyles Healthcare. His expertise includes growing value and volume share through global brand and equity building and consumer marketing. Both nominees are expected to bring deep R&D, product and strategic expertise to further complement Organigram's existing Board capabilities as well as extend its international presence.? Further particulars regarding BAT's second nominee and that nominee's credentials will be provided upon appointment.

Key Transaction Terms

Investor Rights

Contemporaneously with the closing, Organigram and BAT entered into an investor rights agreement (the "Investor Rights Agreement") providing BAT with certain rights including its right to participate in equity issuances to maintain its percentage shareholding, subject to customary exceptions, and periodic top-up rights to permit maintenance of its percentage ownership following exempt issuances.

The Investor Rights Agreement also includes customary pro rata piggy-back registration rights in favour of BAT, and certain share transfer restrictions for BAT's shareholding interests in OGI.

Board Representation

BAT's board representation rights under the Investor Rights Agreement, entitle BAT to appoint (i) 20% of the Board for so long as it holds at least 15% of the issued and outstanding common shares in OGI from time to time and (ii) 10% of the Board so long as BAT holds at least 10% of the issued and outstanding common shares of Organigram from time to time.

Product Development Collaboration

Pursuant to the terms of the PDC Agreement, approximately C$30 million of the Investment Proceeds shall be reserved in order to satisfy certain of Organigram's obligations under the PDC Agreement (the "Allocated Investment Proceeds"), including Organigram's portion of its funding obligations under a mutually agreed budget for the Center of Excellence, and then (together with the balance of the net Investment Proceeds) for general corporate purposes, subject to certain proceed restrictions. Costs relating to the Center of Excellence will be funded equally by Organigram and BAT.

Pursuant to the PDC Agreement, Organigram and BAT have agreed to jointly develop cannabis vapour products, cannabis oral products and any other products, IP or technologies the parties mutually agree to develop. BAT will own all IP developed under this collaboration and will grant to Organigram a royalty-free, perpetual, global licence to all such IP. Each party has also agreed to grant to the other a non-exclusive, perpetual and irrevocable license to certain existing IP of such party and its affiliates for purposes of conducting the development activities and exploiting the products, technologies and IP created by the Centre of Excellence pursuant to the PDC Agreement, subject to certain restrictions.

Advisors

BMO Capital Markets acted as exclusive financial advisor to Organigram and Goodmans LLP acted as its primary legal advisor with DLA Piper as its European counsel.

Herbert Smith Freehills LLP and Stikeman Elliott LLP acted as legal advisors to BAT.

Conference Call and Webcast

The Company will host a conference call and webcast to discuss this announcement:

Date: March 11, 2021 Time: 8:00am Eastern Time

To ensure you are connected for the full call, we suggest registering a minimum of 10 minutes before the start of the call. After registering, a confirmation will be sent through email, including dial in details and unique conference call codes for entry. Registration is open through the live call.

A replay of the webcast will be available within 24 hours after the conclusion of the call at https://www.organigram.ca/investors and will be archived for a period of 90 days following the call.

About Organigram Holdings Inc.

Organigram Holdings Inc. is a NASDAQ Global Select and TSX listed company whose wholly owned subsidiary, Organigram Inc., is a licensed producer of cannabis and cannabis-derived products in Canada.?

Organigram is focused on producing high-quality, indoor-grown cannabis for patients and adult recreational consumers in Canada, as well as developing international business partnerships to extend the Company's global footprint. Organigram has also developed a portfolio of legal adult use recreational cannabis brands including The Edison Cannabis Company, SHRED and Trailblazer. Organigram's facility?is located in?Moncton, New Brunswick and the Company is regulated by the?Cannabis Act and the?Cannabis Regulations?(Canada).

We seek Safe Harbor.

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