Why the OrganiGram Holdings Inc (OTCMKTS:OGRMF) Uplist Could Frame an Opportunity for...

Why the OrganiGram Holdings Inc (OTCMKTS:OGRMF) Uplist Could Frame an Opportunity for Institutional Players


Nearly a month ago, we cited OrganiGram Holdings Inc (OTCMKTS:OGRMF) as a very likely emerging leadership play in the cannabis patch and said to look for a breakout to new all-time highs. The stock has been outperforming just about everything on a relative strength basis for the past 6 months and is now trading at new highs nearly every day as the company continues to expand from a small base. The growth is likely an important point in terms of the way the stock is framed for institutional investors.

Interestingly, the company just announced that it has qualified to trade on the OTCQX Best Market, which is a shift that can further help provide access to exactly such a class of new capital investors. According to the release, “Moving to the OTCQX Best Market is a reflection of Organigram’s continued growth and investor interest in the United States and beyond. Organigram stock will begin trading immediately under the ticker symbol OGRMF.”

OrganiGram Holdings Inc (OTCMKTS:OGRMF) casts 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, OGRMF has been acting very well and making a case for strengthening future growth. The stock has been further buoyed by the company’s uplisting onto the OTCQX, which is the highest OTC tier in the US. That offers greater access to more constrained but deeper-pocketed investors.

“Our industry has seen tremendous momentum in Canada and around the world, so it’s natural that the investment community is increasingly interested in Organigram’s approach, product portfolio and vision of the future,” said Paolo De Luca, Chief Financial Officer of Organigram. “The OTCQX Best Market provides the most prestigious trading market available by OTC Markets Group reflecting Organigram’s own commitment to excellence and growth.  We believe this move to be well-received by investors and investment professionals alike.”

Now commanding a market cap of $649.75M, OGRMF has a significant war chest ($31.6M) of cash on the books, which stands against about $9.1M 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%. You can bet we will update this one again as new information comes into view. 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.

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