|Bid||8.24 x 0|
|Ask||8.27 x 0|
|Day's Range||8.20 - 8.52|
|52 Week Range||4.11 - 11.30|
|Beta (3Y Monthly)||4.12|
|PE Ratio (TTM)||37.12|
|Earnings Date||Jul 27, 2017 - Jul 28, 2017|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||8.98|
Curaleaf is buying expansion with its $875 acquisition of Grassroots. Meanwhile, OrganiGram reported Q3 results, and Aurora Cannabis had a good news/bad news week.
OrganiGram remains on track to complete its Moncton campus by year's end, and is eagerly awaiting the launch of derivative cannabis products in December.
(Bloomberg) -- With four quarters of profitability under its belt, Organigram Holdings Inc. is an anomaly in the Canadian cannabis market.Organigram has higher margins than most of its peers and one of the lowest costs per gram in the industry even though it grows indoors, generally considered the most expensive method of production. Chief Executive Officer Greg Engel attributes this to its ability to get higher yields from its pot plants than companies that grow in greenhouses, as well as its automated packaging lines.“We built a facility and designed a facility that was very focused on high-quality product because we felt there was a market opportunity that was sustainable,” Engel said in an interview at Bloomberg’s Toronto office.Organigram’s streak of profitability comes as the industry undergoes a period of significant upheaval. CannTrust Holdings Inc., previously considered one of the more reputable pot companies, plunged 48% last week after Canadian regulators said it grew cannabis in unlicensed areas of its greenhouse, forcing it to halt all sales and shipments of its products.That came less than a week after Canopy Growth Corp. fired co-CEO Bruce Linton amid shrinking margins and a C$323 million net loss in its most recent quarter.Lower ValuationMoncton, New Brunswick-based Organigram, meanwhile, reported its fourth consecutive quarter on Monday of positive adjusted earnings before interest, taxes, depreciation and amortization, or Ebitda. Revenue of C$25 million ($19 million) missed estimates and gross margin fell to 50% from 60% in the previous quarter, but Eight Capital analyst Graeme Kreindler said he views this as an “isolated event” related to a temporary change in cultivation protocols and the timing of shipments to provinces.Organigram said it cost 95 cents to produce a gram of dried flower in its most recent quarter. That was up from 65 cents in the previous quarter but still compares favorably with C$1.42 at Aurora Cannabis Inc. and $1.48 at Tilray Inc.No other large Canadian pot producer has managed to post such a long string of positive Ebitda. However, although it’s one of the best-performing pure-play pot stocks this year, up 64%, its valuation as measured by its price-to-sales ratio is well below those of its largest competitors.Engel is unperturbed. “At the end of the day, the worst thing that can happen to a company is you’ve got an artificial stock price that you can’t sustain,” Engel said.Competitors also spend a lot on stock promotion, he said. This “may in the short term be helping their stock price, but I’m not sure that’s sustainable without ongoing spending,” he said.The problems at CannTrust and Canopy signal a shakeout in an industry that’s still maturing nine months after Canada legalized recreational pot. Organigram is lucky because it had its wake-up call early, said Engel.The company had to recall several lots of its medical pot in late 2016 and early 2017 after it was found to contain an unapproved pesticide. Engel, who was CEO of Tilray Inc. at the time, was hired after the recall to “make a major cultural shift,” he said.“As a result of that recall, we had monthly ongoing inspections by regulators, and historically the industry was always complaining or defensive about the inspections,” Engel said. “My approach was to embrace them. At the end of the day it’s a partnership, not an adversarial relationship.”In the interview, Engel shared his views of the nascent industry:Beverages and EdiblesOrganigram isn’t being coy about its desire for a partner that can help it develop cannabis-infused beverages, similar to Constellation Brands Inc.’s investment in Canopy, Tilray’s partnership with Anheuser-Busch InBev SA or Hexo Corp.’s joint venture with Molson Coors Brewing Co.Organigram has developed a rapid-onset technology that will allow its drinks to take effect within 10 to 15 minutes, similar to alcohol, and has also created a flavorless cannabis powder that can be added to any beverage.“We wanted to go to these negotiations offering as much as possible,” Engel said. Organigram is seeking a partner from the alcohol industry that can help it develop beverages infused with THC, the cannabis compound that gets you high. It’s also seeking a consumer packaged goods partner for drinks infused with CBD, a non-intoxicating substance that’s thought to have health and wellness properties.BiosyntheticsEngel hopes Organigram’s investment in Montreal-based Hyasynth Biologicals Inc. will also help it lure a partner. Hyasynth is developing large-scale biosynthetic production of cannabinoids, or the active compounds found in cannabis. This method, which uses yeast to produce the compounds in a lab, is cheaper than extracting them from plants and will help lower production costs for products like beverages, edibles and vape pens, said Engel.U.S. Market“We’re very actively looking at the CBD market in the U.S.,” where the substance is legal at the federal level as long as it’s derived from hemp with very low THC content, Engel said. Organigram doesn’t plan to grow its own hemp but is looking at a range of possibilities, including investments in existing brands, products and companies.Corporate GovernanceOrganigram has a fully independent board of directors, a rarity in the cannabis sector. The CEO sees good corporate governance as essential to a well-run pot company.“This is an industry that’s still very much moving from founders and executives being chairmen or multiple insiders on boards, and I think some of the challenges we’ve seen in the industry have been because of a lack of governance,” he said. “You have to have independent governance that has oversight and holds management accountable.”To contact the reporter on this story: Kristine Owram in Toronto at firstname.lastname@example.orgTo contact the editors responsible for this story: Brad Olesen at email@example.com, ;David Scanlan at firstname.lastname@example.org, Jacqueline ThorpeFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The looming merger in big entertainment seemingly has a deadline, and a big reason for a marijuana stock's quarterly loss is revealed.
Organigram earnings missed Q3 views. Aurora Cannabis got two new cultivation licenses. Organigram, Aurora and other marijuana stocks rose.
The shortfall could reinforce worries about recreational marijuana demand in the year after Canada legalized such sales in October 2018.
Cannabis company OrganiGram Holdings Inc. (NASDAQ: OGI) released its third-quarter financial report Monday morning. Organigram reported a quarterly net loss from continuing operations of CA$10.2 million or 7 cents per share on a diluted basis.. Benzinga's Cannabis Capital Conference heads to Detroit on Aug. 15 -- Click here to learn more!
MONCTON, New Brunswick-- -- Q3 and year to date 2019 1 net revenue of $24.8 million and $64.1 million, respectively, and Q3 net loss and net income from continuing operations of $10.2 million and $12.9 million, respectively Q3 and year to date gross margin, which includes the impact of fair value adjustments was and $59.5 million, respectively. Excluding the impact of non-cash fair value adjustments, ...
Canada’s first branded cannabis oriented educational program is on its way, thanks to a newly announced collaboration between Organigram Holdings Inc. (NASDAQ: OGI) (TSX:OGI) and Lift & Co. Corp (TSXV:LIFT) (OTCQB: LFCOF). Organigram is concentrated on the production of high-quality, indoor-grown cannabis both for patients and adult recreational consumers. Among the company’s famous brands are Trailer Park Buds, The Edison Cannabis Company, and Ankr Organics.
Organigram Holdings Inc. (OGI) (TSX VENTURE: OGI), the parent company of Organigram Inc. (the “Company” or “Organigram”), a leading licensed producer of cannabis, is pleased to announce a collaboration with Lift & Co. Corp ("Lift & Co.") (LIFT.V) (LFCOF) to support the launch of Canada’s first branded cannabis educational program via Lift & Co.’s CannSell retail training program.
This small-cap cannabis stock is outperforming Canopy, Aurora, Cronos, and nearly all marijuana stocks so far this year.
OrganiGram's proprietary technology uses nano-emulsion that creates micro-droplets that are very small and uniform. The technology is stable to temperature variations, as well as other factors, such as mechanical disturbance, salinity, pH and sweeteners. Organigram's scientists also figured out how to use the emulsification system to transform the formulation into a dissolvable powder.
In anticipation of the legalization of adult use recreational cannabis edibles in Canada, as well as consumer demand for cannabis-infused beverages, Organigram Holdings Inc. (TSX VENTURE: OGI) (OGI), the parent company of Organigram Inc. (the “Company” or “Organigram”), a leading licensed producer of cannabis, has developed a proprietary nano-emulsification technology that will allow for the production of both liquid and powdered cannabinoid products.
No longer constrained by role as co-CEO, Linton handpicked these two marijuana stocks as possible investments.
The global legal cannabis market is growing at breakneck speed, but there’s one thing that keeps it from growing into a trillion dollar market – legitimacy
Bruce Linton is out as Canopy Growth's CEO. But he has some ideas on which cannabis stocks investors should consider buying.