“OrganiGram Holdings Inc (OTCMKTS: OGRMF) is breakout play on record revenue boost.” That was our initial call that has come to pass as the stock has lived up to expectations and generated significant returns for our subscribers. The stock has continued to edge higher thanks to underlying fundamentals turning bullish.
OGRMF Stock Catalysts And Price Analysis
Record revenue and improved financial positions were the initial catalysts that strengthened investor confidence in the stock. Fast forward, the stock’s visibility, validity, and liquidity have received a big boost on Organigram being approved for Nasdaq Listing.
Listing on the Nasdaq marks an important milestone in the Company’s evolution as it underscores commitment to dynamic growth. When it comes to operational efficiency, the key to generating long-term revenues and shareholder value, the Company has secured a landmark cultivation license from Health Canada paving the way for the expansion of cannabis production.
The stock taking a flight in response to the wave of positive developments does not come as a surprise. Renewed investor interest has since seen the stock rally by more than 90%, since the start of the year, further underling Organigram potential in generating long-term shareholder value.
A spike to record highs means that Organigram is officially pullback play. Correction from current highs should continue to elicit buying pressure that could result in the stock edging even higher. A spike to the $8.35 means the stock is staring at support at the $7.60 level.
Above the $7.60 level, the stock remains supported for further upside action. Conversely, a violation of the support level could result in the stock plunging back to the $6.50 mark, the next substantial support level.
What does Organigram Holdings Do?
Organigram Holdings is engaged in the cultivation, production, and selling of dried cannabis oil in Canada. As a licensed producer of cannabis and cannabis-derived products, the Company produces high quality indoor grow cannabis for patients as well as adult recreational consumers.
Organigram Holdings is flying high in the market, having become the latest member of the Nasdaq. Listing on the high profile marketplace is an important milestone as it paves the way for the stock to enjoy greater visibility. The Company stands to elicit keen interest from institutional investors that have been eyeing opportunities in the burgeoning sector.
“We are pleased to celebrate this significant company milestone. We are proud to have assembled a world-class team and facility that continues to deliver value to our shareholders. This listing will help us continue to demonstrate our commitment to dynamic growth,” says Greg Engel, CEO, and Organigram.
Listing on the NASDAQ has been coming given Organigram has achieved significant milestones that underscore long-term prospects when it comes to shareholder value generation. For starters, the Company has enhanced its cannabis cultivation, and production capacity, a development that positions it to generate significant revenues as demand for cannabis, and its derivatives continues to soar.
Cannabis Production Boost
In the recent past, the Company has received perimeter license amendment For Phases 4A and 4B and 13 cultivation rooms at its Moncton Campus.
The 13 incremental cultivation Rooms are poised to result in 11,000kg additional cannabis production capacity. Once Phase 4 expansion is complete, Organigram cannabis production will increase by an aggregate 77,000kg.
“We are proud to continue our legacy of delivering on our commitments. The completion of this phase of our expansion reinforces our commitment to innovation, efficiency, and best-in-class operations. Being on time, this expansion reinforces our commitment to shareholders and shows our abilities with industry-leading execution,” says Greg Engel, CEO, and Organigram.
Improved cannabis production capacity comes on the heels of OrganiGram, establishing itself as a leader in the Canadian adult-use recreational market. The Company is fresh from reporting record Net revenue for Q2 that reflected operational excellence.
Industry-leading gross margin, as well as positive adjusted EBITDA, underscore the Company’s ability to generate long-term shareholder value. Q2 net revenue totaled $26.9 million, more than double net revenue generated in Q1. Gross margin, on the other hand, stood at $16 million or 60%.
Listing on the Nasdaq is a development that should continue to prop Organigram Holdings market sentiments given the exposure the Company will get now from institutional investors. The Company has also enhanced its cannabis cultivation and production capacity.
Revenue growth is another development that indicates the Company’s growth strategy is finally bearing fruit. As it stands, Organigram remains well positioned to continue edging higher on underlying fundamentals turning bullish.
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Disclosure: We have no position in OGRMF and have not been compensated for this article.