ORGANIGRAM HLDGS I COM NPV (OTCMKTS:OGRMF) is a Canadian MJ producer that’s been around for nearly four years, and seems to be gaining ground on its peers in the space. However, they were recently saddled with a product recall demand, and now steps have been put in place to move forward. The company just announced that it has enhanced its testing protocol beyond the required regulatory testing to ensure that all products currently being sold on its store, and all products sold in the future, will be tested for an expanded quantity of possible contaminants, including Bifenazate and Myclobutanil. Since the recall dates, Organigram has grown, harvested and tested numerous lots of medical marijuana, and all have passed the additional testing protocols.
That’s obviously good news for shareholders, and management is obviously eager to put the issue in the rear view mirror. “We completely support Health Canada’s latest announcement to introduce random testing into their process to ensure the confidence of medical cannabis users across Canada” noted Denis Arsenault, Organigram CEO. “This is very much in line with the steps we’ve taken internally, so we are very supportive of this industry-wide initiative”.
ORGANIGRAM HLDGS I COM NPV (OTCMKTS:OGRMF) trumpets itself as a company that produces and sells medical marijuana in Canada. The company was founded in 2013 and is based in Moncton, Canada.
According to company materials, 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, condition-specific 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.
According to company materials, “From the day we started back in 2013, it’s been about making lives better – for our clients, our people, and our community. We’re based in Moncton, New Brunswick, the heart of the Maritimes, but at OrganiGram Holdings we’re committed to improving the quality of life for Canadians across the country. For us, this means working with health-care providers and industry organizations, supporting research and education, and providing a safe, effective product. To be effective in that last goal, we made a decision to produce organic cannabis. Growing certified organic medical cannabis isn’t easy, in fact, most licensed producers won’t take this on. It means more care, more testing, more rules… but in the end, it means a product that we feel delivers on our goals in the best way. And improving the quality of life for Canadians is not just about getting safe, quality product to them effectively. It’s about creating jobs, being good neighbors and contributing to our community.”
Find out when $OGRMF stock reaches critical levels. Subscribe to OracleDispatch.com Right Now by entering your Email in the box below.
According to the company’s recent release, the Company has identified seven key initiatives as part of the process to ensure this issue cannot reoccur at Organigram. These initiatives include steps to test each input received from outside suppliers, a comprehensive screening process for existing and new suppliers, pesticide testing of every lot of final product prior to packaging, installation of cameras within mixing areas and a full training program for all employees.
“We’ve taken this event very seriously and have a comprehensive plan in place to ensure our integrity and reputation remains intact” added Arsenault. “Our focus now is implementing change and maintaining our focus on client service.”
As part of this process, OrganiGram Holdings also advises that its organic certification has been suspended as it undergoes a re-certification process which is currently underway. Organigram is working diligently with the certification body to ensure that this process moves as expeditiously as possible. This process will also reflect Organigram’s previously communicated intention to produce both organic and non-organic medical marijuana within the same facility.
Traders will note roughly lateral movement in the stock over the past month. That said, market participants may want to pay attention to this stock: OGRMF has a history of dramatic rallies. Furthermore, the listing has seen interest climb, with an increase in recent trading volume of 32% over the long run average. Since we last covered the name, the stock has moved 19.9% higher.
Currently trading at a market capitalization of $196.6M, OrganiGram Holdings has a reserve ($1.8M) of cash on the books, which compares with about $344K in total current liabilities. OGRMF is pulling in trailing 12-month revenues of $7.3M. In addition, the company is seeing major top line growth, with y/y quarterly revenues growing at 116.7%. You can bet we will update this one again as new information comes into view. For continuing coverage on shares of $OGRMF stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!