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This edition of stock analyzers will take a closer look at otcmkts: ogrmf (OrganiGram Holdings Inc). This is no doubt a stock you will want to put on your watchlist showing growth and potential.
Throughout this article, we will look at more information about this company including, market data and financial press releases. All information has been collected from online reputable financial sites for your knowledge and research.
OrganiGram Holdings, Inc is mainly involved in the production and sale of medical marijuana. Its primary focus is producing cannabis for adult recreational consumers and patients. The company’s leading brands are Adult Recreational and Medical. The company was formed in 2010 and is currently headquartered in Moncton, Canada.
More About otcmkts: ogrmf
We will now take a further look at the company to discover some of its products and facilities to have a complete picture of this dynamic company based in Canada.
Organigram Holdings Inc is a licensed producer of medical marijuana. The company produces medical marijuana for patients through its subsidiary and currently operates in Canada.
Organigram holdings Company Overview
Organigram Holdings Inc. NASDAQ (OGI) TSX (OGI) is a leading Canadian licensed producer of high-quality cannabis and extract-based products.
The company was founded in 2013 when Organigram started as a medical cannabis provider. The company is primarily focused on producing quality in door grown cannabis both for patients and recreational consumers throughout Canada. They also develop international business partnerships to extend the company’s awareness globally.
otcmkts: ogrmf indoor production facility is situated on a 14-acre campus in New Brunswick. It includes edible derivatives as well as an in-house extraction facility.
OrganiGrow Dynamic Software
OrganiGrow proprietary software is used to track every production element, including nutrients, soil, and water, and consider various environmental conditions like wind, humidity, light, and temperature. Analysts will then analyze the data to decide what conditions are optimal for plant growth. These highly motivated and experienced staff understand that every cultivar has unique environmental needs.
Over 1,000 data points are collected and tracked during production for optimal performance.
otcmkts: ogrmf – OrganiGram stock
OrganiGram Holdings Inc. ticker symbol (OGI) is currently trading at 2.6800 and down by 4.96%. Its previous close was 2.8200, and its volume was 11,903,292. If we look at the day range, we will see that it is between 2.400-2.880 and shows an average volume of 21,868,819. Its PE Ratio is currently 1.38.
OrganiGram Holdings earning date is not available at this time; we will await the earning date. The company does not offer a dividend yield at this time. Its overall market capitalization is currently 626.206 Million.
We will now look at some of the most popular questions regarding this stock to understand more information and the psychological direction.
Is organigram an ideal investment?
The valuation metrics currently show organigram may be overvalued. A score of F would indicate that it might not be ideal for value investors. Its financial growth prospects do demonstrate the potential to perform in unison with the markets.
Will organigram stock increase?
14 Analysts have currently carried out 12-month forecasts on organigram, and there is a median target of 1.67, the high estimate is 3.37, and the low estimate is 1.49. This medium estimate represents a decrease of 37.88% from the last price.
Is Ogi a good buy?
The average analyst recommendation is a BUY. Its average price target is $2.02 and has an overall score of 43.
What are organigram holdings?
The company is a licensed producer of medical marijuana and produces medical marijuana for patients through its subsidiary.
otcmkts: ogrmf Press Releases
Let us now focus our attention on some of the most recent press releases to discover the company’s projects to get a better idea of direction and potential growth.
otcmkts: ogrmf Launches Jar of Joints and trailblazer snack bars
As part of OrganiGram’s production strategy, it is proud to add two new additions to its product portfolio: Shred Tropic Thunder jar of joints and Trailblazer chocolate bars.
Greg Engel, CEO, commented that acting on consumer feedback is a core element of their production and development strategies.
He believes that the two new additions will set a new standard and maintain consumers’ direct shared response, with positive reviews and most searched brands by consumers.
SHRED Jar of Joints
Organigram’s high potency and quality pre-shredded and pre-milled dried flower product are undoubtedly the most searched for brand in the Ontario Cannabis store and on the website for just over three months.
The pre rolls are carefully packed to preserve their unique flavor and ensure their freshness to the consumer. They are packaged in a convenient jar of 14x 0.5g pre-rolled.
otcmkts: ogrmf investment in its automation procedures. To produce large volumes of precision-packed pre-rolls, it is currently making approximately 30 pre-rolls per minute with the potential for improvement. This will contribute to operating efficiencies and reduced manual labor and will potentially attract a higher gross margin aligned with the consumer demand.
otcmkts: ogrmf Expanding Profit Margins With product lines and automation
The company commented that they believe they will continue to dominate with their alternative products to gain more traction. They continue to see pre-rolls and dried flowers, which are the two largest recreational market categories throughout Canada. The company continues to leverage its indoor facility to offer a unique flavor and aroma to consumers and ensuring the optimized growth of the cannabinoid products.
otcmkts: ogrmf Have also identified opportunities that can potentially enhance gross margins and revenues. Multipack pre-rolls and vape cartridges will also attract higher margins as the company continues to invest in automation in order to drive cost efficiencies, and reduce dependence on manual labor.
(TSX: OGI) (NASDAQ: OGI) Organigram Holdings Inc – Executive Changes
The company announced that Matt Rogers, Senior Vice President, will leave the company to pursue other interests.
otcmkts: ogrmf would like to thank Matt for his hard work and dedication toward helping Organigram grow from a licensed producer of medical cannabis into one of Canada’s leading producers of medical and recreational producers.
Matt was one of the company’s earliest employees, who has embraced the challenges and opportunities of the cannabis industry. His insights and creativity in developing their state-of-the-art production facility.
Greg Engel, CEO commented that Matt had been a key team member during its rapid growth. He led and overseen the construction of edibles and derivatives facility and operational strategy related to its products.
Matt will continue to work in Organigram until the end of Feb 2021 and closely work with Nathalie Batten, the new plant manager.
Nathalie Batten Joined the team in 2020 November and has held senior positions throughout her career in various organizations. She has built high-performance teams and executed strategic business plans. She is a professional industrial engineer and holds a Master of Business Administration.
otcmkts: ogrmf Fiscal year 2021 Results
Organigram shares it 1st quarter fiscal reports for 2021.
- Adult-use recreational net and gross revenue increased by 42% to $22.5 million in the 1st quarter.
- Positive cash flow from operations was 0.3 million in the 1st quarter, with the last three-quarters of its positive cash flow.
- The company ended the quarter with $134 million in cash and short-term investments.
- Before the quarter-end the company increased production to meet increased consumer demand to increase sales to scale for the future.
- The company launched 53 stock keeping units as part of its portfolio, including Edison dried flower strains. Approximately 14 additional stock-keeping units are expected to launch at the end of fiscal quarter 2 in 2021.
- SHRED brand was the most searched product in its Ontario store and website during November and December 2020.
- The company announced Marni Wieshofer, which is Organigram’s first U.S domiciled board member.
Greg Engel, CEO commented that the company is pleased with their double-digit sales growth in the adult recreational market, reflecting the success of their new product launches. The company looks forward to higher margins Edison dried flower products, contributing to the overall revenues, and launching more products in the next few quarters. The company plans to focus on production and achieve more significant economies of scale and increase automation and cost-effective opportunities to improve gross margins significantly.
Financial Results for 1st Quarter 2021
- Net Revenue of $19.3 million. In Q1, the adult-use recreational market grew by 30% to $16.8 million.
- Gross revenue of $25,3 million
- Cost of Sales at $23,2 million
otcmkts: ogrmf has been focusing and revitalizing its product portfolio with the launch of 53 stock-keeping units from July 2020 and 14 more before the end of Q2 2021.
Product Results Overview
- The company launched new Edison Indica strains for higher-margin with Edison Dried Flower Strains. Organigram noted significant growth in its dried flower product in the market with high competition and even lower-priced alternatives being offered; overall, this has caused market share shifts within its sector.
- The company’s cannabis infused chocolates consist of Trailblazer snax, a value-priced cannabis chocolate bar, and Edison truffles. The company invested heavily in its manufacturing equipment to ensure that the bars are filled separately for higher accuracy. They expect to launch other Edison products throughout the following quarters.
- The company’s vaping products include Trailblazer Spark, flicker and glow torch vape cartridges., which add to Organigram’s impressive line-up. It offers consumers a high-quality cartridge with three unique terpene flavors. The company plans to increase its THC concentration in line to meet consumer demand.
The Outlook for Organigram
Recent data shows that the Canadian market for adult recreational users reached $270 million and accelerated by $3.2 billion. It is indeed a record as recreational uses were only legalized in October 2019. The products have attracted consumers who were not previously smokers or vapers; furthermore, the number of authorized stores was doubled as the cannabis store retail regulator announced in December 2020. The industry has made a concentrated effort to beat illicit market prices, which has helped convert illegal users into legal consumers.
The accelerated industry growth in this sector and unexpected higher demand for its latest products resulted in staff and production challenges. This was the main contributor to missed revenue opportunities, and because of this otcmkts: ogrmf has decided to increase staff and focus on new productions to gain a market share for meaningful sales growth.
otcmkts: ogrmf product portfolio will launch several value segment products for the increased demand in this sector. The latest products have already been well received, especially SHRED, which drove the company revenue in the first quarter of 2021.
There are various opportunities that the company has identified in moving forward. It plans to gain economies of scale as it further improves its cultivation and packaging processes. Its impressive lineup of offerings will have a positive effect on gross margins and revenues. The company will continue to invest in automation and cost efficiencies.
The company will continue to serve international markets and is seeking Good Agricultural Practice Certificate from the control Union Medical Cannabis Standard and making excellent progress. The company will expect to be authorized in the 3rd quarter of 2021.
otcmkts: ogrmf generated positive cash flow from its operational activities of $0.3 million and $134 million in cash and investments.
If you enjoyed this article on otcmkts: ogrmf you will be interested in reading about otcmkts:mgaff, which is another emerging and dynamic company. At Stock Analyzers, we aim to bring the very best penny stocks to your attention on our website and free news alerts. Stay up to date with all your favorite companies, and sign up for our newsletter to keep informed.