Organigram Holdings Inc. (TSXV:OGI), one of the Canadian marijuana stocks, said it has shipped its first cannabis products to Quebec
SmallCapPower | June 21, 2019: Organigram Holdings Inc. (TSXV:OGI) (NASDAQ:OGI), one of the Canadian cannabis stocks, Thursday announced that it has now shipped its first cannabis products to the province of Quebec, following purchase orders placed with the Société québécoise du cannabis (SQDC) and following registration with the Autorité des Marchés Publics. With this shipment, Organigram has now distributed products for sale to all 10 Canadian provinces.
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“Product innovation continues to drive our growth strategy and our ongoing expansion. As we look ahead to the legalization of edibles and extracts, we are excited to have the national network in place to offer Canadians access to new thinking and new products as they explore Cannabis 2.0, and a new cannabis experience,” said Organigram CEO Greg Engel in a statement.
Organigram’s currently available product portfolio includes value, mainstream and premium product offerings across the categories of dried flower, pre-rolls, and oils.
Organigram added that since this initial shipment was made subsequent to the Company’s third quarter ended May 31, 2019, this shipment, together with additional shipments expected to be made to Quebec in the current quarter, will be reflected in the Company’s results for the fourth quarter ending August 31, 2019.
Organigram’s most recent financial results (Q2 2019) saw its net revenue more than double from the previous quarter to a record $26.9 million, while its “all-in” cost of cultivation (including non-cash depreciation and share-based compensation) has been reduced to $0.85 per gram of dried flower harvested, due largely to higher yields per plant. The Company claims it has the lowest cost of cultivation of all publicly-reporting Canadian LPs.
Organigram also reported adjusted EBITDA for the period of $13.3 million, or an adjusted EBITDA margin of 49%. The Company said it expects to increase its production capacity to 113,000 kg/yr by the end of 2019 from current licensed production capacity of 47,000 kg/yr.
Shares of Organigram Holdings have surged more than 72% year to date to its current price of $8.35. Canopy Growth stock, meanwhile, has risen 45% over the same time period, while Aurora Cannabis shares have gained 41% and HEXO Corp stock has climbed 57%.
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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