Advanced Extraction Systems Inc. (AESI) Completes Sales Agreement With Organigram Holdings Inc. for New High Capacity Supercritical CO2 Extraction System

CHARLOTTETOWN, PE--(Marketwired - May 08, 2017) - Advanced Extraction Systems Inc. (AESI) is pleased to announce the completion of an agreement with Organigram Holdings Inc. (TSX VENTURE: OGI) to build the first in a series of custom CO₂ Supercritical Fluid Extraction (SFE) Systems for producing high-quality cannabis extracts on a commercial scale.

"We are very excited to be expanding our product offering and introducing our newest high capacity extraction system with Organigram," says David Campbell, Chief Operating Officer of AESI. "Through our work with Organigram we have designed a compact, high-throughput supercritical fluid CO₂ extraction system capable of processing over 5000 kg's of plant material per year." AESI's extraction systems now range from a 2 x 15 L up to 3 x25 L which will meet present and future processing capacity needs of licensed producers of cannabis in North America. This new high-throughput extraction system is expected to be up and running at OGI in Moncton, New Brunswick by August 2017.

CO₂ extraction produces contaminant free oil extracts for the global medical marijuana industry. Unlike organic solvent extraction methods, CO₂ extraction is clean and green and is quickly becoming the gold standard for residual free cannabis extracts.

"This is a critical investment for Organigram," stated Michel Robichaud, Director of Edibles and Extraction at Organigram. "We see oils and extracts as key to the future of the cannabis industry in Canada, and this partnership with AESI is the next step in trailblazing the category." Organigram has recently announced the development of a 15,000 sq. ft. state-of-the-art production facility dedicated to the commercial production and processing of cannabis oil and derivative products. Added Robichaud, "Our selection of AESI was an easy one based on their technical and scientific knowledge, as well a geographical advantage that will facilitate our close working relationship."

Advanced Extraction Systems Inc. is the first Canadian company currently designing and manufacturing competitively priced, modular, expandable and automated supercritical fluid CO₂ extraction equipment for the medical marijuana industry in Canada, and is currently expanding to US and Latin American markets. AESI' s manufacturing partner, Diversified Metal Engineering LP, is a full service, CRN, ASME, ISO 9000 certified engineering and fabrication facility with over 25 years' experience in the manufacturing of complex commercial scale pressure systems.

Organigram Holdings Inc. is a TSX Venture Exchange listed company whose wholly owned subsidiary, Organigram Inc., is a licensed producer of medical marijuana in Canada. Organigram is focused on producing the highest quality medical marijuana for patients in Canada. Organigram's facility is located in Moncton, New Brunswick and the Company is regulated by the Access to Cannabis for Medical Purposes Regulations ("ACMPR").