Our recent product recall has been unsettling to our many valued clients. This is understandable. Until the time of the recall, Organigram was recognized as a trusted supplier of high-quality medical marijuana. We know the recall has shaken your trust in our Company and its products but we are determined to regain your confidence. The purpose of this letter is to outline how we intend to achieve that objective.
First, I want to apologize for the inconvenience the recall has caused. We built Organigram with a goal of becoming one of the world’s best organic medical marijuana growers and suppliers. We know we have disappointed you and, quite frankly, we have deeply disappointed ourselves. We are determined to never let an issue like this happen again. I also want to assure you that the Company did not intentionally contaminate its crops and OrganiGram’s management was surprised and shocked when traces of Bifenazate and Myclobutanil were discovered.
Investigation Completed, New Processes in Place
Our investigation into the contamination incident is complete. The inquiry was thorough and was undertaken with the full cooperation and assistance of Health Canada. Unfortunately, no hard evidence leading to the contamination was discovered. However, following the investigation, seven Company-wide initiative have been implemented with regaining your faith and trust in mind. These are:
- Effective immediately, Organigram is testing every product lot for pesticides before they are made available for sale;
- All inputs from outside suppliers are now tested before they are used. Inputs include such things as seeds, growing medium, fertilizers, and water;
- The company has updated its Integrated Pest Management (IPM) operating procedures to include periodic plant sampling for pesticide screening;
- The company has developed a formal program for receiving, securing and testing critical inputs on a routine basis;
- A new, comprehensive screening process is now in place to pre-qualify suppliers before they are approved to do business with Organigram;
- The company has installed closed-circuit cameras in areas of its facility that were previously not required to be monitored;
- The company has developed and instituted a new education and training regime for all employees.
Compensation to Be Reviewed
Some of you have questioned our proposed compensation plan. The initial plan was developed before we understood the full scale of the recall, and was based on what preliminary research determined to be industry-standard. We’ve listened to client comments and we are excited to announce that we will be providing all clients without insurance coverage full credit for affected purchases. This credit will be communicated to each client individually and confidentially very shortly.
I am pleased to report that testing of crops harvested since the recall have been completely negative –not a single trace of contaminants has been detected. I am equally pleased to let you know that the yields and quality of the newly harvested crops have also been consistently excellent. This bodes well for the product that will be available moving forward.
I also want to advise that we are undergoing a recertification process with Ecocert, the organization that validates our organic standards. Ecocert suspended (but did not remove) our certification during the investigation and has been fully supportive of our efforts to bring our operations back to their exacting standards.
In closing, I want to assure you that your well-being and satisfaction remains a top priority. I trust the information in this message will help rebuild your faith and trust in Organigram. We look forward to serving you with high-quality organic product for many years. As always, our team of client-service personnel is available to answer your questions and concerns. They can be reached at 1-855-961-9420.
Chief Executive Officer