ORGANIGRAM HLDGS I (OTCMKTS:OGRMF) On To The Next High

As has been the case within the cannabis space in general, share prices of companies, especially those of companies which seem to be well invested within the sector, have been rising and at a high rate. The sector is part of the reason why the Canadian stock exchange is enjoying its hay-days at the moment as these companies rally it up to the top.ORGANIGRAM HLDGS I (OTCMKTS:OGRMF) has not been left behind.In fact, a look into their share price reveals that the company has been enjoying a price increment ever since September with the price seemingly going only up and up. This rise from $1.75 to $2.89 is nothing short of a serious jump in our view.A price trend can be seen in the chart below: OGRMF Daily ChartAs such, we opted to look into the catalyst that may be pushing OGRMF to these heights in a bid to understand both their business model and their value proposition. Moreover, with the current marijuana space having all the entities contained within it, we also wanted to find out what differentiates them from competition.This piece gives a detailed account of this review of OGRMF.However, it is important to start by touching through OGRMF as we try to understand who they are and where they have come from.OGRMF: Historical HighlightsOrganigram Holdings Inc. was incorporated in 2013 and its headquarters situated in Moncton, New Brunswick, Canada. It is a TSX Venture Exchange listed company whose wholly owned subsidiary, Organigram Inc., is a licensed producer of medical marijuana in Canada regulated by the Marihuana for Medical Purposes Regulations.Their focus over the past has been the producing the highest quality, condition specific medical marijuana for patients in Canada.Currently, courtesy of the change in legislation, their new goal is to align and position themselves within the industry in a bid to ensure they take full advantage of the legalization of recreational cannabis within Canada.A lot is therefore being done to ensure this comes to fruition as has been discussed below.Going into Recreational CannabisAs with other cannabis companies operating within Canada, a lot of work is going into preparing and positioning themselves in readiness for the legalization of recreational cannabis across the country. OGRMF has not been left behind.The company has been doing a lot in ensuring they have enough in their product line and where they deem their output insufficient, getting into partnerships to cover up for their shortfalls.This was seen in late August when they began by releasing their first pure CBD cannabis oil dubbed Shubie.The product which is meant to increase their product line is only the first step into ensuring that the company is well positioned within the sector given the high level of competition from other players. Moreover, the company ought to be investing a lot more in marketing this produce to their target market or persons allied to their target market, which they have as we will later see.This seems like an under-achievement when compared the fact that they were the first company to actually sign a deal with the New Brunswick provincial authority for the distribution of marijuana to the adult-use recreational market.The company which, as earlier stated, is gearing up for the legalization of cannabis seems to be in full gear according to this deal.The deal requires OGRMF to deliver a minimum of 50,000 kilograms of cannabis per annum to the New Brunswick market. This is expected to gross in between $40 million and $60 million per annum. Such a drastic surge in revenues is no mean feat for the company and goes a long way in explaining why their valuations have seen such a surge over the recent two months.The deal was hailed by management as the first and best in Canada with their CEO Greg Engel going further to say:

"We are excited to enter into this MOU with the Province. The Government of New Brunswick has established itself as a leader in the developing marijuana industry, working to ensure that the industry develops in a responsible and effective manner. New Brunswick's stewardship on this file has been recognized throughout Canada and we are proud to work closely and support them as a strategic partner."

Source:This was not the end for them.They further realized that the output needed to be generated from a source, necessitating their production facility expansion project.This new strategic decision will see the company do the following:

• Hire 140 new employees by the end of 2018.
• Expand their existing production facility by 98,000 square feet by the end of this year to 134,000 square feet.
• Complete a further 36,000 square foot expansion by end of 2018.

All these are in a bid to ensure that they are able to meet the new demand and given that this alone will boost their output to 25,000 kilograms, the company is now working towards obtaining the remainder of the output going forward.All the above will go a long way in ensuring the company’s future is solid.Such a future is also backed up by their growing financial position.The $299 million company with over 89 employees has been growing revenues over the past with their most recent amount standing at $1.9 million for 1Q2017.However, despite the company making losses, a key figure was their marketing costs which stood at $690,747 significant of their play into the current and future target market.They are also enjoying a working capital base of over $52 million, enough to finance their operations going forward thus the company, in our view, is in good shape.We therefore maintain that OGRMF is a good investment vehicle and will be the source of high return for many investors especially those looking to venture into the marijuana space.ConclusionORMGF represents one of the success stories in the market. The company is due to keep going higher into the future. We hope investors don’t miss out on this chance to make the kill.We will be updating our subscribers as soon as we know more. For the latest updates on ORMGF, sign up below!Disclosure: We have no position in OGRMF and have not been compensated for this article.