OrganiGram Holdings Inc (OTCMKTS:OGRMF) Extends Rally On Another Positive Surprise

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OrganiGram stock is on roll since April 26th, moving up by 22% after OrganiGram Holdings Inc (OTCMKTS:OGRMF) (TSXV:OGI) announced several positive developments.

Organigram Holdings is one of the numerous recreational cannabis companies which have cropped up in Canada over the past few years and although it is not one of the largest, its quarterly results could be a pointer at the fortunes of two of the biggest companies in the same industry. On the other hand, it appears that after becoming one of the biggest sellers of recreational cannabis in Canada, the company has set its sights on the capital markets in the United States. The Moncton, New Brunswick based company is looking for bigger investments and wants to emulate its rivals who have made it big after listing their stocks in the US.

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Bellwether

Although Organigram is much smaller compared to the Canadian cannabis behemoths Canopy Growth and Aurora Cannabis, it is not a stretch to say that the company’s performance in the fiscal first quarter could be a fair indication on how the other two companies are going to fare. In its quarterly result, Organigram met its forecasts and doubles its revenues from the previous quarter. The total revenues stood at CA$26.9 and met the targets.

However, the company suffered a loss of CA$6.4 million due to increased spending and it was reflected in the fact that operational spending costs stood at CA$9.7 million, a rise of 154%. Considering the fact that Organigram is a much smaller than Canopy Growth and Aurora Cannabis, it then stands to reason, that those two companies are almost certain to beat their revenue expectations comfortably.

US Listing

While Organigram has grown by leaps and bounds over the past few years in the Canadian recreational marijuana market, it has still not been able to get big ticket investment like some of its rivals, who have listed in the US capital markets. The company now wants to change that and attract some institutional investment, in order to keep with its peers.

As of now, Organigram is primarily funded by retail investors in the stock market but in order to grow big, it would need large investments from institutional and that will happen once it lists in the US. To that end, the company has already applied for a Nasdaq license. It will enable it to compete on a near equal footing with Canadian rivals like Canopy Growth and Aurora Cannabis among others.

OrganiGram stock is one of the biggest gainers in the cannabis sector with a gain of 85% so far 2019.

Are you excited about the company’s future?

OrganiGram Holdings Inc. (OTCMKTS:OGRMF)