OrganiGram gets $990K from New Brunswick government

The New Brunswick government is giving up to $990,000 toMoncton'smedical marijuana company OrganiGram through payrollrebates.

The funding, announced on Wednesday,will be distributed over three years and help create up to 113 jobs, Premier Brian Gallant said in a statement.

OrganiGram'sexpansion plans are based on dramatic growth in the number of medical marijuanaprescriptions and the anticipated lucrative market for recreational use, given the Trudeau government's plans to legalize marijuana.

"Our industry has the potential to be a once in a generation opportunity for growth and economic development as we move towards a recreational marketplace," CEODenis Arsenault said in a statement.

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"We are from New Brunswick and we're excited to invest at home where the advantages of a well-educated work force, low power rates and a competitive cost of living make New Brunswick and Moncton a logical place for our future," he said.

OrganiGramisthe only company in Atlantic Canada that's licensed to grow and sell medical marijuanaand one of only 30 legal pot producersin Canada.

It started shippingproduct out to customers about a year ago.

Health Canada has estimated medical marijuana sales will hit $1.3 billion annually by 2024.

Last April, OrganiGram secured $5 million in credit to accelerate its growth strategy.

The company went public in August 2014, saying it needed investorsto expand its operations to meet the anticipated demand for its product.

The latest funding is being provided through Opportunities NB Inc.The Crown corporationwill offer a payroll rebate of up to $8,761 for each position created and maintained, with a total value not exceeding $990,000, according tothe government release.

The incremental annual payroll for 113 positions will be $5.1 million at full ramp-up and will increase the GDP by $9 million per year, the government said.