Organigram Stock – OGI

Organigram Stock Guide – OGI Stock Price, News & More

Organigram Stock Ticker: OGI

Company Name: Organigram Holdings Inc.

Markets Listed: NASDAQ (OGI), TSX (OGI)

OGI Stock Price

The current Organigram (OGI) Stock price is:

Organigram Company Overview

Organigram Holdings Inc. is the parent company of Organigram Inc., a leader in the Canadian legal cannabis market. Organigram is a Canadian licensed producer (LP) and trades on the NASDAQ and TSX exchanges under the symbol OGI. The company produces premium cannabis and cannabis-extract based products.

Organigram Stock Analysis

Many top analysts have reviewed Organigram Holdings Inc. stock as it is one of the top covered marijuana stocks in the sector.

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While the U.S. market for cannabis has still not yet been legalized at the federal level, the bottom line is that many potential investors are excited about both the sale of medical marijuana and adult recreational consumers to new users in the United States.

Over the past four quarters Organigram has surpassed consensus Earnings per Share (EPS) estimates only once on their earnings report. Categorized in the Zacks Equity Research Medical – Products industry, Organigram revenue of $14.69 Million for the quarter ending November 2020 missed the Zacks Consensus Estimate by 8.34%. Prices listed in U.S. Dollars not CAD.

Organigram Holdings Inc. shares have added over 33% since the beginning of 2021 compared to the S&P 500’s gain of a mere 1.2%. The current consensus EPS estimate is -$0.02 on $18.67 million in revenues for the coming quarter and -$0.07 on $83.72 million in revenues for the current fiscal year. Organigram reported cash flow of -56.20% in FY 2020 from September – August.

The next OGI stock Earnings Report update is expected on April 13th pre-market. This earnings release will cover Q2 FY2021. The Q1 report with positive cash flow reported was the 2nd out of the last 3 quarters (9M) posting positive cash flow. Investors are hoping for a positive surprise and continued growth rate in the next earnings release demonstrating the company’s ability for continued revenue growth.

Organigram stock delivered an annual return of -45.2 % in 2020, opening at $2.50 on January 2nd, 2020 and closing at $1.37 on December 30th, 2020.

Currently, the 2021 Organigram annual return is 34.56 % after OGI stock opened 2021 at $1.36 on January 4th, 2021 and currently sits at $1.83 as of January 27, 2020.

Organigram’s 2021 Estimated P/E Ratio is -11.38. Price to Earnings Ratio, P/E Ratio, is the most commonly used investor metric for determining a company’s value in relation to its earnings. Most examples use the actual earnings per share (EPS) for the trailing twelve months (TTM).

Organigram Analyst Ratings

Analyst ratings range from Strong Buy to Hold Rating as well as the Zacks Rank of Sell. Many believe that OGI stock has a fair value with potential for positive growth rate over the coming months and years. The fastest growth may come through expanded international partnerships. The current status of OGI stock translate to a Zacks Rank #4 (Sell). Organigram shares are expected to underperform the market in the near future according to Zacks. The Zacks Rank is a short-term stock recommendation from 1 to 3 months ranking stocks from #1 which indicates Strong Buy to #5 which is a Strong Sell. Zacks Rank #3 is a Hold Rating.

Organigram holds a StockNews.com POWR Rating of C which is neutral.

There are over 4,000 stocks daily that receive Zacks Rank using their proprietary analyst earnings templates. Zacks Investment Research creates consensus estimates of the average of all current estimates made by brokerage analysts. The Zacks Consensus Estimate is deemed to be a more advantageous EPS estimate of the best stocks because of the reduced risk of any single analyst making an incorrect forecast.

In the recent months and years past numerous stock market records have been broken. It is important for investors, whether they be novice investors or experienced, to be mindful of the fact that ongoing industry challenges and the overall outlook for recreational marijuana and medical marijuana can have material impact on the performance of OGI shares in terms of profit and current price.

Organigram Investor Information

Organigram currently trades publicly under the OGI stock symbol on the NASDAQ Stock Market Global Select Exchange in the U.S. and Toronto Stock Exchange (TSX) in Canada.

The most recent Organigram Investor Presentation highlighting Quarter 1 of Fiscal Year 2021 from Jan. 12, 2021 can be found HERE.

Key Organigram Q1 Fiscal 2021 Financial Highlights

• Organigram demonstrated double digit % growth in adult-use recreational market revenue over both Q4 2020 and Q1 2021 largely driven by Rec 2.0 products.
• Q1 2021 Canadian adult-use recreational gross revenue and net revenue grew 42% and 30%, respectively, to $22.5 million and $16.8 million, respectively, from Q1 2020.
• Q1 2021 Canadian adult-use recreational gross revenue and net revenue grew sequentially 14% and 11%, respectively, from Q4 2020
• Generated positive Cash Flow from Operations (CFO). This is the 2nd quarter of the past 3 (9M Period) with positive Cash Flow from Operations Earnings Reports.
• Ended the First Quarter of F2021 with $123 Million in Cash & Short-Term Investments
• Repaid $55 Million on term loan December 1st, 2020 for a pro forma cash & short-term investments of $79 Million and $60 Million for term loan.
• Q1 2021 negative adjusted EBITDA of $6.4 million declined from Q1 2020 positive adjusted EBITDA of $5.7 million largely due to lower adjusted gross margin in Q1 2021. Gross margin is a company’s net sales revenue minus its cost of goods sold (COGS).

You can find a full review of the latest earnings release in our Jan. 12th post here: Organigram Q1 2021 Fiscal 2021 Results

For direct inquiries regarding Organigram Holdings Inc. or to receive future earnings release updates you can contact Amy Schwalm, Vice President of Investor Relations, at 416-704-9057 or amy.schwalm@organigram.ca

Organigram Market Cap

Organigram Holdings Inc. current market cap is $418.33 Million which represents the current fair value share price of $1.83 multiplied by outstanding share number of 232.09. OGI is a small-cap company and shareholders are exposed to high levels of risk. The Market Capitalization is a measurement of company size. This calculation is based on the company’s share price times the number of shares outstanding. A small company can produce faster growth and bigger returns, but stockholders are exposed to greatest risk as compared to large market camp companies with greater stability.

In comparison, Canopy Growth (CGC Stock) is more than 20 times the size of Organigram with a market cap of $13.23 Billion. The market cap for Aphria (APHA Stock) is $4.1 Billion. Market cap is not always the most important indicator of the best stocks however. Over the trailing 12 months, Aphria’s reported revenue of 561 Million CAD (Canadian Dollars) ($443 Million USD) compared to Canopy Growth’s reported sales during the company’s last four quarters (TTM) totaling $477 Million CAD ($377 Million USD), 15% less revenue than the smaller market cap Aphria.

Organigram Dividend

OGI stock does not currently pay a dividend.

Organigram History

Organigram was founded in 2013 as a medical cannabis provider. The company currently focuses on producing indoor-grown cannabis that is of the highest quality for both the adult-use recreational market as well as the medical marijuana market. Servicing both adult consumers and medical patients helps Organigram extend to all areas of the market. Organigram currently conducts sales in all 10 Canadian provinces.

The company is also focused on developing international business relationships to extend the global footprint of the organization. Organigram focuses on operational excellence and translating that into strong financial results that deliver a positive return on investment for shareholders.

Organigram Cultivation

Organigram currently owns and operates a 14-care indoor production facility that is located in Moncton, New Brunswick. The facility includes its own in-house edibles and derivative facility as well as in-house concentrate extraction capacity.

The Organigram campus utilizes three-tiered cultivation technology to maximize high-quality indoor product while keeping costs low allowing for the best prices possible for patients and consumers. The three-tier system helps maximize square footage allowing more cannabis to be grown and produced that a standard indoor grow operation.

Modern design along with technically advanced automation improvements have helped Organigram create ergonomically-friendly grow rooms as well as utilizing automatic potting and maximize pre-roll and packaging machines. Larger propagation rooms with advanced environmental systems further the operation.

OrganiGrow Tracking Software

Organigram believes data is the key to unlocking the true potential of the cannabis plant and is a top priority in everything the brand does. Each element of the cultivation process is tracked utilizing an in-house software system called OrganiGrow.

OrganiGrow compares variables like Soil, Nutrients, Water, Wind, Light, Humidity & Temperature against the direct yield and lab results of cannabis harvest allowing the staff to analyze the data and determine the most effective conditions for optimal plant growth and yield.

Organigram has amassed an expansive cannabis genetic library rich in historical data. This data can be used to create unique micro-climates specifically tailored and best-suited for individual plant genetics.

OrganiGrow tracks over 1,000 data points during production including:

• Plant Height
• Plant Growth Rates
• Nutrient Input
• Water PH
• Coco Coir / Soil Inputs
• Biological Inputs
• Cannabinoid Development
• Weight Controls
• Quality Standards
  • Potting Compaction
  • Trim Quality
  • Microbial Levels

Organigram Brands

Adult Recreational

Edison Cannabis Co.

Edison Cannabis Co. is a Canadian cannabis brand utilizing data to effectively grow better cannabis. The team is currently working on understanding and developing strain-specific micro-climates that are optimized specifically for each cultivar’s unique needs.

The brand currently produces the following product lines:

• Edison Flower
• Edison Extracts
• Edison Bytes
• Edison Oils

Edison Flower utilizes hand-selected cultivars that are robust in nature and nurtures these plants in curated environments backed by data. The flowers are stored with dual humidity control to ensure maximum freshness. Strains include Rio Bravo, Lola Montes, La Strada, Limelight, The General, Chemdog, Samurai Spy, El Dorado, Casablanca, City Lights, Black Cherry Punch, ICC and Slurricane. In Q4 2020, Edison launched new high THC strains including Grapefruit GG and Samurai Spy LTO. Q4 2020 also saw the launch of new 28g packaged buds in Ontario, products previously available in Alberta and Atlantic Canada.

Edison Extracts are made with true-to-flower flavor and curated terpene blends in both ready-to-use vape pens and PAX Era pods. Strains include Rio Bravo, Lola Montes and La Strada in each type of vape setup.

Edison Bytes are cannabis-infused chocolate products crafted from years of research and innovation. These chocolate cannabis truffles are crafted using best-in-class ingredients with thoughtful portions and an artful design for the modern cannabis consumer. Edison Bytes combine classic chocolatier practices with modern cannabis extraction techniques. The brand utilizes cocoa ingredients sourced  through an impact-driven global support program designed to promote and enrich self-sustaining farming practices that protect nature, communities and families. Current flavors include Milk Chocolate Cannabis Truffles, Dark Chocolate Cannabis Truffles, Gingerbread Cannabis Truffles. Edison is launching a new Trailblazer Snax flavour for the Rec 2.0 market in Q2 Fiscal 2021.

Edison Oils are edible oil products made from high-quality cannabis plant extracts formulated in rich, organic sunflower oil for a smooth-taste and effective delivery method of cannabinoids. These edible oils come in a dropper format and include CBD Oil, Sativa Oil, Hybrid Oil and Indica Oil.

Trailblazer

Trailblazer is a cannabis brand featuring high-value, high-quality cannabis products that are ready to use. New products are expected to debut in the coming months. Trailblazer is a value positioned brand and currently one of the most-searched brands on Ontario Cannabis Store website. The product lineup includes Whole-Flower, Pre-Roll Joints, Chocolate & Vape Pens with Good THC potency, good taste and good price.

Shred

Shred offers Pre-Milled Flower and Pre-Roll Joint Multipacks. The brand was the #1 most searched brand in November and December 2020 highlighting a preference for value based products among the user base. Shred was designed to break down the barriers to purchasing in the legal realm: price and convenience. Only Shred, Never Shake. It is intended to be a best value product for consumers.

Medical Brands

Organigram

Organigram is Atlantic Canada’s original Licensed Producer of medical cannabis for the region. The brand has been serving patients since 2014 with medical cannabis and cannabis oils produced in indoor environments with maximum control over production and product quality. Organigram has amassed many years of experience with both cannabis plants and patients alike achieving a reputation for exceptional service and a lineup of award-winning products.

International Partnerships

Organigram & Canndoc

Last year in June 2020, Organigram entered into a multi-year agreement agreeing to supply dried cannabis flower to one of the largest and most established medical cannabis producers in Israel, Canndoc Ltd. (“Canndoc”). Canndoc is a subsidiary of InterCure Ltd. (TASE Reference ID: INCR/INCR.TA).

For over a decade Canndoc has been pioneering pharmaceutical-grade cannabis in Israel. The GMP-approved medical cannabis products are sold in pharmacies throughout Israel while the company also holds international cultivation and distribution agreements in the European Union and Canada.

The Organigram / Canndoc supply agreement terms include Organigram providing 3,000 kilograms of premium, high quality dried flower grown indoors to Canndoc by December 31, 2021 for processing and distribution throughout the Israeli medical cannabis market. Under the terms Organigram may provide an additional 3,000 kilograms of dried flower during the same time period at Canndoc’s option which is subject to conditions.

Organigram’s agreement with Canndoc provides a tiered pricing scheme with the exact value dependent on overall product mix and product potency. There is also potential opportunity for Organigram to launch their own branded medical products with Canndoc in both the Israeli and European markets along with granting Canndoc exclusivity and related rights within the Israel market for a period of approximately 7.5 years.

Leading Organigram Innovation

Biosynthesis

Organigram is one of only two current Canadian Licensed Producers that have made a strategic investment in the distributive technology of biosynthesis.

Biosynthesis is a production of molecules using living cells. When instructions are incorporated for producing a specific molecule into the genetic code of a simple host organism, for example bacteria, yeast or algae, these organics can then produce nearly any molecule as instructed. The host cells become production factories for the desired molecules.

THC and CBD, while being two of the major cannabinoids found in cannabis, make up less than 5% of the cannabis plant compounds as a whole. Minor cannabinoids and terpenes, despite being over 100 in nature, make up less than 0.1%. This leaves 95% of the cannabis plant as waste after throughput from manufacturing methods whether those are planting, growing, harvesting, trimming or curing large quantities of cannabis plants and extracting their active compounds for cannabis extracts.

Biosynthesis has the potential to create cannabinoids at a tremendously large scale with a fraction of the cost of traditional cannabis cultivation.

One of Organigram’s strategic investments has been Hyasynth Biologicals Inc., a Montreal-based biotechnology company known as a leader in the field of biosynthesis and cannabinoid science. Hyasynth has develop disruptive technology that utilizes proprietary yeast strains and patent-pending enzymes to naturally produce cannabinoids without growing the cannabis plant.

There are multiple benefits of Biosynthesis vs Traditional Cultivation including:

• Reduced Operating Costs and Capital Costs
• Improved Consistency, Scalability, Quality and Superior Purity
• Increased Production of Minor Cannabinoids as well as Major Cannabinoids
• Meets Rigorous Standards of Pharmaceutical and CPG Industries
• Reduced Environmental Footprint and Carbon Impact

Organigram does believe that there will always be a sizable market for premium, dried cannabis flower however, through their work with Hyansynth the company believes that assumptions about scale, speed and overall production can be drastically improved. In addition to the investment, Organigram has a right to purchase 25% of the cannabinoid offtake from Hyansynth at a discount from market price.

Nano-Emulsification Technology

Through extensive Research & Development, the Organigram R&D team has been able to develop a proprietary nanoemulsion technology capable of generating micro-particles that are small, yet uniform in nature. The reduced particle size allows for improved absorption in the body as opposed to traditional solid edibles, leading to a more reliable and consistent, controlled experience.

Traditional solid cannabis edibles require the body to spend significant time breaking down the fat soluble cannabinoids content before it can be metabolized and absorbed in the body. The lengthy process can lead to users overconsuming cannabis edibles and experiencing undesirable effects.

The Organigram research team of experts has also developed a transformative use of the emulsion system into solid form creating a dissolvable cannabinoid powder. The nanoemulsion technology is anticipated to increase stability and temperature variation, salinity, pH, mechanical disturbance and sweeteners.

The powdered format holds potential to offer consumers a measured dose of cannabinoids that can be added to the desired liquid of their choosing, such as water, tea, juice or other choices. This also allows for easy cannabinoid ingestion and discretion, portability and increased product shelf life. The solid form, shelf-stable powder is water-compatible and unflavored. It is expected to be absorbed by the body within 10-15 minutes after ingestion.

Cannabis Genetic Research

Through a partnership with Genome Atlantic, Genome Canada, New Brunswick Foundation (NBIF) and the Government of Canada, Organigram Holdings Inc. have a traditional research project underway focusing on cannabis at Université de Moncton.

The research is focused on using actionable insight in a multitude of areas including:

• Product Quality Improvement Standards through genetic mapping. This process results in healthier, more resilient plants and improved growing techniques.
• Productivity Increases & Improved with lowered costs through the introduction of beneficial microbial inoculants and development of strains with improved traits.
• Protecting Genetics through the identification of specific markers.
• Apply actionable insight with genomics to determine the impact that different growing practices have on improving key attributes in cannabis such as cannabinoid content like THC & CBD as well as overall terpene levels.

Organigram Management Team

Gregory Engel

Chief Executive Officer

Mr. Gregory Engel is a senior executive with over 3 decades of national and international business experience across the fields of biotechnology, pharmaceuticals, consumer packaged goods and cannabis.

Mr. Engel has led several companies throughout his career including his previous role as CEO of Tilray. As CEO of Tilray Mr. Engel was instrumental in leading Tilray to becoming the first medical cannabis exporter in Canada as well as setting many industry standards.

Paolo De Luca

Chief Strategy Officer

Mr. Paulo De Luca has over 20 years of financial business experience in diversified areas. He has previously held the title of senior financial, investor relations and accounting leadership roles in his previous company. Mr. De Luca has substantial experience with both traditional and non-traditional financing and debt offerings.

Tim Emberg

Senior Vice President, Sales and Commercial Operations

Mr. Tim Emberg is an accomplished senior sales and marketing leader with experience serving in the OTC, CPG and healthcare fields. He brings extensive knowledge of the Canadian economic market and business landscape as well as being well versed in regulatory environments.

Helen Martin

Senior Vice President, Strategic and Legal Affairs

Ms. Martin has previously been responsible for company operations at past organizations that include experience in all stages of private equity investment life cycles having managed numerous investments from conception and initial engagement through exit.

Matt Rogers

Senior Vice President, Operations

Mr. Matt Rogers comes from a background at Ganong Bros, Canada’s oldest chocolate and candy company. He brings a strong analytical sense and focus on continuous improvement to the team with a focus on cost control.

Derrick West

Chief Financial Officer

Mr. Derrick West has previously served as the Chair of the Audit Committee of Organigram’s Board of Directors from December 2017 – February 2020 as well as the Investment Committee. Mr. West is a Chartered Professional Accountant who has held multiple previous CFO roles.

Amy Schwalm

Vice President, Investor Relations

Ms. Amy Schwalm brings over 20 years of experience in senior investor relations, accounting and finance roles. She joined the team in January 2019.

Christy Zhou

VP, Legal & Regulatory Affairs

Ms. Christy Zhou has been part of the cannabis industry since 2014 and has been at the forefront of Canada’s changes for the medical and recreation markets. She has worked closely with regulators and business owners in the space to shape regulatory processes and necessary changes in Canada while also foraging new paths into emerging international markets.

Organigram Board of Directors

Gregory Engel

Chief Executive Officer

Peter Amirault

Chairman

Sherry Porter

Director

Dexter D. John

Director

Stephen A. Smith

Audit Committee Chair

Geoffrey Machum

Director

Ken Manget

Director

Marni Wieshofer

Director