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Are Blue Skies on the Way for OrganiGram Holdings Inc (OTCMKTS:OGRMF)?

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A stock we have continued to like into the teeth of this cannabis correction is OrganiGram Holdings Inc (OTCMKTS:OGRMF). To further flesh out the story, the company just announced its 2018 fiscal year and fourth quarter results. This included an important note: “The Company’s fiscal year-end and fourth quarter encompasses operations up to and including August 31, 2018, and as a result, does not include adult-use recreational cannabis revenue.”

According to the release, “The Company is proud to report record net sales of $12.4 million for the 2018 fiscal year (up 131% from $5.4 million in 2017). Gross margin increased to $52.5 million in 2018 from $(3.3) million in 2017. Excluding fair value adjustments on biological assets, those figures would be $6.5 million and $(1.9) million, respectively. Registered medical patients increased to 15,730 in 2018 from 7,404 in 2017 or 112%. Reported net income of $20.5 million in 2018 up from $(10.9) million in 2017.”

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 its 2018 fiscal year and fourth quarter results.

In all, we’ve witnessed 3% during the past week in terms of shareholder gains in the listing. What’s more, the name has seen a growing influx of trading interest, with the stock’s recent average trading volume running 18% above the average volume levels in play in this stock over the longer term.

“The importance of 2018 cannot be overstated for Organigram as well as the industry,” said Greg Engel, the Company’s Chief Executive Officer. “We are incredibly proud of our ability to meet the challenges of scaling our business in preparation for the adult recreational use market. We are pleased with our progress to date and believe that we have performed well in a highly competitive space while always maintaining a sustainable cost structure. Ultimately, it is our view that our Moncton Campus will be seen as a crown jewel in the industry as it is able to produce consistent, high-quality indoor grown product at scale to support our brands with the lowest dried flower cultivation costs reported to date in Canada.”

Currently trading at a market capitalization of $481.49M, OGRMF has a significant war chest ($155.8M) 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%. We will update the story again as 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.

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