Organigram soars on "path to profitability"
Organigram Holdings Inc (C:OGI)
Shares Issued 156,179,212
Last Close 1/15/2020 $4.05
Thursday January 16 2020 - In the News
The Globe and Mail reports in its Thursday edition that shares of Organigram soared 44 per cent Wednesday after nearly breaking even in the first quarter. The Globe's Marcie Nicholson writes that the jump in price for the Moncton-based company's stock is a rare bright spot for the industry. "Given the high bar they had set themselves and two quarters of declining financials, this should be a relief that headwinds were temporary and supports our confidence which sees [Organigram] as one of our preferred picks in the cannabis industry," Owen Bennett, an analyst at Jefferies Financial Group, said in a note, adding this puts the company in "a very select group of Canadian LPs [licensed producers]." Organigram chief Greg Engel told analysts on a call: "We continue to believe those that can deliver near-term profit will pull away from the pack in the months ahead. Unlike some of our peers, our financial results are evidence that we have forged a clear path to profitability." In the quarter ended Nov. 30, Organigram posted sales of $25.2-million, up 55 per cent from the prior quarter, partly because of a surge in its wholesale transactions to other producers. It lost nearly $900,000, down from a $22.5-million loss last year.
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