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.


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.


Organigram Holdings Inc (OTCMKTS:OGRMF) Completes Designing New Production Facility

Organigram Holdings Inc COM NPV (OTCMKTS:OGRMF) announced completion of the designing of its proposed facility that can increase its annual capacity by 26,000 kg. The new production facility shall be created at Moncton.

Organigram’s Expanding Portfolio

The new production facility, the company announced, shall help the company’s plant in producing 9,000 kg more product on a yearly basis. This means that the total production capacity will rise up to 26,000 kg a year.

The new facility for surplus production is expected to be in its final stage by spring 2018. Additionally, its expansion plans will also coincide with this facility completion. It has to be noted here that the completion of production facility shall be done on the perfect deadline since spring is said to be the best time for rising cannabis demand.

In order to complete the project, the company shall make use of its operating cash along with the cash from recently stuck deal that will be finalized anytime in the coming week.

The CEO of company, Denis Arsenault said that the company ensured to remain focussed on getting hold of “economies of scale.” Cost efficiency is a vital factor for this. The CEO noted that proper management of cash flow was important to achieve the expanding projects with success.

Cost-effective expansion

The CEO of company says that the new production facility sits at an ideal location. The new plant location will ensure rapid and cost-effective expansion.

Organigram Holdings is looking forward to enhance its existing portfolio by expansion. It is vital to note that the growth strategy of company comes in the backdrop of recent deal with Trailer Park Boys. With a vision of being at the top slot of cannabis industry, the company is in a profitable stage to enhance its production, especially when the U.S. has given its nod to recreational marijuana.

The CEO calls this expansion, an effort that will benefit the entire industry and not just the company.

Business Marijuana

TPB Productions Ltd., Organigram Holdings Inc COM NPV (OTCMKTS:OGRMF) Signs Branding Partnership Agreement

Trailer Park Boys (TPB) Productions Ltd. has chosen Organigram Holdings Inc COM NPV (OTCMKTS:OGRMF) as its exclusive business partner, marijuana producer, and brand developer.

The Partnership

The companies have signed an initial product exclusivity and branding partnership contract of five years.

Louis Thomas, TPB Productions representative, noted that TPB Productions had long been considering entering the Canadian cannabis industry and meeting with Organigram Holdings enabled it to carry on its vision to move forward.

As part of the team-up, Organigram Holdings and TPB Productions will work closely together on a solid product portfolio with recreational cannabis consumers as the main target audience. In line with this, there will also be product placements as part of the broader branding strategy. Organigram Holdings will be responsible for the exclusive distribution of the products.

The exclusive agreement is significant for both companies. As for Organigram Holdings, the collaboration will strengthen its position in the growing cannabis industry in Canada, especially at a time when it is leaning towards legal recreational marijuana. TPB, on the other hand, can leverage the expertise of the company and expect that the deal will bear fruits.

“Brands will play a key role within the cannabis market space, and we’re devoting the thought leadership and developing our strategy well in advance of these expected changes to ensure we’re prepared,” emphasized Ray Gracewood, Organigram Holdings Chief Commercial Officer (CCO).

Property Acquisition

Last month, Organigram Holdings has fully acquired an industrial property adjacent to its Moncton-based facility. This includes a 136,000-square-foot building on a 10-acre industrial land.

The acquisition plays an important role in the company’s broader expansion strategy when it comes to marijuana production. As part of the initial construction phase, the Organigram Holdings Board of Directors has already approved the buildout of roughly 70,000 square feet. This will increase the company’s annual production rate to about 16,000 kg of flower and over 6,000 kg of fan and sweet leaf.

Organigram Holdings is not the only emerging Canadian cannabis industry player working on its long-term growth prospects, especially in terms of production capacity. New Age Farm Inc COM NPV (OTCMKTS:NWGFF), for example, has fulfilled the construction of its second eco-friendly cannabis production plant in its Washington-based Green Campus. This will enable the company to take advantage of the growing cannabis industry in the US with ramped up production capacity.

On Monday, Organigram Holdings has closed at $3.75 while New Age Farm has closed at $2.40.


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.


OrganiGram Holdings Inc (OTCMKTS:OGRMF) To Raise Over $35 million Through Underwritten Sale

OrganiGram Holdings Inc (OTCMKTS:OGRMF) has announced that it has signed a letter of engagement, with Dundee Securities Ltd, to sell 9.86 million shares of its common stock, to a few underwriters. Dundee Securities is acting as the lead underwriter and is acting on behalf of the rest. The sale has been priced at $3.55 per share and would be conducted on a bought deal basis. However, the agreement is still subject to certain approvals, including the filing of a short form prospectus.

OGRMF announced that it would receive gross proceeds of $35.003 million, which it intends to use for capital expenditures, working capital and for general corporate purposes. The company has also decided to offer the underwriters with an over-allotment option, which would be exercisable up to 30-days following the close of initial sale. Under the over-allotment plan, OrganiGram plans to offer approximately 1.48 million additional shares of its common stock, which would result in approximately  $5.24 million, in additional gross proceeds. The offering is expected to close on December 7, 2016. It should be noted here that the short form for the sale, would be filed in all provinces of Canada only, except Quebec.

Earlier last month, the company revealed that it has successfully completed its previously stated licensing transaction with TGS International Inc LLC. The agreement required OGRMF to issue 437,957 shares of its common stock to TGS, at a share price of $1.37. However, the shares would be held in an escrow and are subjected to the accomplishment of certain milestones by TGS, for release.

The CEO of OrganiGram, Denis Arsenault, expressed his pleasure at having completed the transaction and claimed that the expertise and technical knowledge of TGS was an integral part of their strategy. He went on to explain that the company plans to maximize their production yields, while streamlining the extraction process and continuing to develop high quality cannabis products.

OrganiGram Holdings Inc (OTCMKTS:OGRMF) lost 1.9% of its share value, during the November 15 trading session, to reach a close at $2.87 per share. The stock had a trade volume of 624,599.

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