As we have stated a number of times, one of our absolute favorite growth plays in the Canadian cannabis space is OrganiGram Holdings Inc (OTCMKTS:OGRMF). The company is moving up the hierarchy with pace and the stock continually finds itself naturally as a leadership name on each advance. The latest is no exception. The story is further fleshed out as the company just announced it has signed a multi-year extraction contract with Valens GroWorks Corp. (OTC:VGWCF), a provider of cannabis products and services focused on proprietary extraction methodologies, distillation, cannabinoid isolation and purification, as well as associated quality testing.
According to the release, “Under the terms of the agreement, Valens will extract cannabis flowers and trim from Organigram’s Moncton operation as well as hemp to produce extract concentrate. In turn, the concentrate will be used by Organigram to produce oils and, eventually, derivative edible and vaporizable cannabis products. The legalization of cannabis edibles and other derivative based products in Canada is expected later this year.”
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 signed a multi-year extraction contract with Valens GroWorks, a provider of cannabis products and services focused on proprietary extraction methodologies, distillation, cannabinoid isolation and purification, as well as associated quality testing.
The chart shows 44% added to share values of the name over the past month of action. What’s more, the name has registered increased average transaction volume recently, with the past month seeing approaching 150% over what the stock has registered over the longer term.
“Looking ahead to another year of unprecedented firsts in the national and global cannabis industries, our growth strategy is aggressive,” says Greg Engel, CEO, Organigram. “A key element of that success is partnerships with companies like Valens who can offer the capacity, quality and expertise to help ensure we deliver on our ongoing commitment to meeting the increasing demand of the global medical and adult recreational cannabis markets.”
Now commanding a market cap of $777.77M, OGRMF has a significant war chest ($130.1M) of cash on the books, which stands against about $11.3M in total current liabilities. OGRMF is pulling in trailing 12-month revenues of $13.3M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 49.7%. 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.