Over the course of the past two months, we have gotten 100% behind the OrganiGram Holdings Inc (OTCMKTS:OGRMF) story as an emerging leadership player in the cannabis space. The ladder is in place, and this company has been climbing it. Sales growth is almost in the triple digits right now and the company has been keeping up with the biggest players in terms of signing supplier agreements, which is big from a relativistic perspective.
As a case in point, the company just announced that it has signed a supply agreement with the Newfoundland and Labrador Liquor Corporation (NLC) in anticipation of the launch of a legal, adult use recreational cannabis market in the province. “We are pleased to have been accepted as a supplier to NLC,” says Greg Engel, Organigram’s Chief Executive Officer. “At Organigram, we are very proud of our Atlantic Canadian roots and the opportunities we have to offer our neighbours a broad choice of high-quality cannabis products.”
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 shares are riding on a wave of enthusiasm with the cannabis space at large, but also with a number of catalysts that form a composite picture of aggressive movement up a ladder in the broader cannabis marketplace, from the ground up. The latest such thread in this tapestry comes in the form of the company’s announcement that it has signed a supply agreement with the Newfoundland and Labrador Liquor Corporation (NLC). Recent action has seen 39% during the past month in terms of shareholder gains in the listing. Furthermore, the company has benefitted from a jump in recent trading volume to the tune of greater than 370% beyond its prior sustained average level.
“As we approach legalization, we look forward to working with both the NLC and private retailers across the province to help ensure the right tools are in place to offer consumers in Newfoundland and Labrador an exceptional consumer experience,” says Tim Emberg, Vice President of Sales and Commercial Operations, Organigram.
Now commanding a market cap of $661M, OGRMF has a significant war chest ($31.6M) of cash on the books, which is balanced by 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%. We will update the story again soon as further details emerge. 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.