Has OrganiGram Holdings Inc (OTCMKTS:OGRMF) Hit Bottom?

Has OrganiGram Holdings Inc (OTCMKTS:OGRMF) Hit Bottom?


Is the bottom in for OrganiGram Holdings Inc (OTCMKTS:OGRMF)? It’s a question that will be on plenty of traders’ minds on Monday and to close out 2018. Our own sense is Yes, at least through the end of the calendar year, and quite likely well into next year.

To further flesh out the story, the company just announced it has secured a loan from Farm Credit Canada in the amount of $10M, which will be used to finance the expansion of the Company’s Moncton campus. The debt is for a term of five years at a variable rate of interest, and currently at 6.70%. The debt is secured against certain assets of Organigram.

OrganiGram Holdings Inc (OTCMKTS:OGRMF) casts itself as a company that produces and sells medical marijuana to individuals and physicians in Canada. It offers marijuana plants, seeds, and cuttings; cannabis oil; and dried flower and cannabis.

The company sells its products through phone and online store. It also operates healing centers that offer treatments for post-traumatic stress disorders, chronic pain, and trauma therapy. In addition, the company exports its products.

OrganiGram Holdings Inc. was founded in 2013 and is based in Moncton, Canada.

Moreover, 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 just announced it has secured a loan from Farm Credit Canada in the amount of $10M, which will be used to finance the expansion of the Company’s Moncton campus. Traders will note just under -10% during the past week stripped out of shares in the company. What’s more, the stock has witnessed a pop in interest, as transaction volume levels have recently pushed 13% beyond its prior sustained average level.

“Organigram is wholly committed to meeting the significant and growing demand for high quality cannabis across Canada and standing ready to take on new opportunities around the world,” says Greg Engel, CEO, Organigram. “We are very proud to be investing once again in our state-of-the-art facility located here in Moncton, New Brunswick, increasing our production capacity and fostering cannabis growth expertise”.

At this time, carrying a capital value in the market of $469.39M, OGRMF has a significant war chest ($155.8M) of cash on the books, which compares with 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 developments transpire. 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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