Categories
Marijuana

OrganiGram Holdings Inc (OTCMKTS:OGRMF) Achieves Record Net Revenue In Its Fiscal 2019 Second Quarter

OrganiGram Holdings Inc (OTCMKTS:OGRMF) recently released its Q2 results for its fiscal year 2019, revealing that it achieved a record net revenue of $26.9 million.

Organigram is a licensed, leading cannabis producer and it released the results of its Q2 ended February 28, 2019 on Monday last week. The Q2 report also featured the first full quarter of the company’s sales related to adult use of recreational marijuana. Organigram CEO Greg Engel stated that Q2, FY19 represents the second consecutive quarter that the financial results demonstrated operational excellence. The performance also helped to achieve the record $26.9 million net revenue.

We executed very well again this quarter and have established Organigram as one of the leaders in the Canadian adult-use recreational market,” stated Mr. Engel.

Organigram expects the strong performance to continue for the rest of the year especially with the various initiatives that it has this year. This includes the upcoming edibles and derivative launch scheduled to take place during autumn 2019. The company is excited about the growth opportunities that will come with the new products as well as the strategic partnerships and expanding capacity.

Aside from the $26.9 million net revenue that the company achieved during its Q2 2019, it also reported a $33.5 million gross revenue. It also reported its cost of cultivation per gram at $0.65 and its “all-in” cultivation cost at $0.85. The latter includes the share-based compensation and the non-cash depreciation.

Expansion efforts

The company is currently working on its Moncton facility’s Phase 4 expansion through which it will create 92 incremental grow rooms. They will be added in stages and Organigram expects to complete the construction process before the end of 2019. Having additional grow rooms will triple the company’s current production capacity.

The firm is currently refurbishing its Phase 5 expansion on the extra 56,000 square feet in its facility. The ongoing refurbishment should bring it to European Union GMP level of standards as part of Organigram’s efforts to create more extraction capacity. The company expects the Phase 5 construction to be complete by October this year. These expansion efforts will effectively increase the company’s production capacity and thus boost its revenue.

Categories
Marijuana

OrganiGram Holdings Inc (OTCMKTS:OGRMF) Reaches 1 Million Pre-roll Production Milestone

OrganiGram Holdings Inc (OTCMKTS:OGRMF) closed its trading session on Thursday at $5.93, just a few weeks after it announced that it achieved a major production milestone with more than 1 million pre-rolls.

The company announced at the end of January 2018 that it reached the 1 million cannabis pre-roll production mark, a significant milestone for OrganiGram ever since recreational cannabis use gained legal status in 2018. The firm managed to achieve an impressive milestone mainly because it automated its production processes. It also owes the achievement to the strong consumer demand in the market which encourages the company to scale its production.

“At Organigram, we are proud to be among a select group of licensed producers who have been able to rise to the challenge of large-scale pre-roll production,” stated OrganiGram CEO Greg Engel.

Engel also noted that OrganiGram’s operations team did a great job by automating critical parts of the production process. This allowed the company to increase its overall production process while still maintaining its product quality. The firm is now one of the major players in Canada’s rapidly growing cannabis industry. Its supply chain currently spans all the provinces in the country except Quebec.

OrganiGram and Valens GroWorks Corp Sign multi-year extraction deal

OrganiGram also closed January with the announcement that it had secured a multi-year cannabis extraction deal with Valens GroWorks Corp. The latter deals with the provision of cannabis-based products and services pertaining to cannabis distillation, custom extraction methods, isolation, and purification. It also focuses on quality testing.

OrganiGram will allow Valens to extract trim and cannabis flowers from its Moncton operation so that they can generate extract concentrate. OrganiGram will then use the concentrate in its cannabis oils production process. The company also plans to use the concentrate in vaporizable and edible cannabis products. Valens CEO Tyler Robson stated that his company was excited to be one of OrganiGram’s trusted partners. He also added that Valens is proud to be working with firms such as OrganiGram towards creating innovative technologies that will then cater to the long-term needs of clients.

Categories
Business

OrganiGram Holdings Inc (OTCMKTS:OGRMF) To Partner With The Trailer Park Boys

OrganiGram Holdings Inc (OTCMKTS:OGRMF) has announced that it has been chosen by the Trailer Park Boys, based in Nova Scotia, as their exclusive Canadian cannabis producer, brand developer and business partner. As per the agreement, the company would be working closely with the management at TPB Productions Ltd, so as to develop a competitive product portfolio, as well as branding and packaging for the users of recreational marijuana. Moreover, Oranigram would serve as the exclusive distributor for the products.

Ray Gracewood, the CCO of OGRMF, stated that the relationship would solidify their strategic building blocks, as they continue to plan for the legalization of recreational cannabis, in Canada. He also revealed that TPB had a vision to develop a national brand and it was exciting to know that OGRMF could assist them. Mr. Gracewood also reaffirmed that OgraniGram would continue to supply world class cannabis, to its patient base. He clarified that the said partnership was aimed at utilizing opportunities that would be available, once recreational cannabis has been legalized.

It should be noted here that TPB was represented by the Sonic Entertainment Group, in this transaction. Louis Thomas, the president of Sonic Entertainment, stated that they were carefully monitoring the situation in Canada, to understand how best they could enter the market. He further claimed that the timing of this partnership and the selection of OrganiGram was decided after meeting with the executive team of OGRMF. The agreement between the two entities would be valid for a period of 5-years.

The announcement comes just a week after OgraniGram announced its financial results for the 3Q2016 and also provided an operational update. In the update, the company stated that it has started construction of its fully funded expansion plans, announced earlier, which are due to be completed by fall 2017. Once complete, the expanded facility would be able to deliver a production capacity of an estimated 17,235 kg of flower per year, which translates to over $100 million in annual sales.

OrganiGram Holdings Inc (OTCMKTS:OGRMF) had a trade volume of 387,421 and gained 26.07%, during the November 23 trading session, to close at $2.47 per share.

Pin It on Pinterest