In our last piece on OrganiGram Holdings Inc (OTCMKTS:OGRMF), we suggested the stock was poised for a breakout to new all-time highs and shouldn’t be ignored. That turned out to be on target, with shares tapping new historic highs late in the day on Friday.
This has been an interesting time for the cannabis patch. The strong have been out in front, and laggards have started to spark up as well. The catalyst really lies in the attention that followed the tweet by Andrew Left, famed head of Citron Research: “Today is the day that everything has changed in Cannabis. Real $$$ into space.” That was a little over a week ago, in reference to a monster new strategic investment by a Fortune 500 company in a cannabis company (STZ and CGC, respectively). That has spurred a massive flow of money into the space. As we see it, OGRMF has been one of the leaders in response.
OrganiGram Holdings Inc (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.
OGRMF’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.”
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As noted above, the stock has been ramping higher as a leadership play in the red-hot cannabis space. To help drive the action, the company just announced that it has signed a supply agreement with Nova Scotia Liquor Corporation (NSLC) in anticipation of the launch of a legal, adult use recreational cannabis market in the province.
“We are pleased to announce our supply agreement with NSLC,” says Greg Engel, Organigram’s Chief Executive Officer. “Our home markets have always been a key priority for Organigram and this announcement solidifies our position as the market leader here in the Maritimes. With supply arrangements in place in six provinces, we take great pride in our place as a national leader working towards a responsible, sustainable and successful adult-use recreational cannabis market.”
At this time, carrying a capital value in the market of $569M, OGRMF has a significant war chest ($31.6M) of cash on the books, which must be weighed relative to about $418K in total current liabilities. OGRMF is pulling in trailing 12-month revenues of $12.2M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 94.3%. This may be a very interesting story and we will look forward to updating it again soon. Sign-up for continuing coverage on shares of $OGRMF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $OGRMF, either long or short, and we have not been compensated for this article.