- Organigram’s
corporate governance distinguishes the company in the cannabis industry
- OGI’s
consistent financial performance positions it as an “anomaly in the
Canadian cannabis market”
- The
company recently upgraded from the TSX Venture Exchange to the Toronto
Stock Exchange
Organigram Holdings Inc. (TSX: OGI) (NASDAQ: OGI), the
parent company of Organigram Inc., a leading Canadian licensed producer (LP) of
premium-quality cannabis and extract-based products, is focused on producing
high-quality, indoor-grown cannabis for patients and adult-recreational
consumers. Championing that cause is Organigram’s leadership team, a group of
seasoned professionals on the forefront of the global cannabis market who bring
decades of experience in consumer-packaged goods, and pharma, including a CEO
who held the same position at Tilray (NASDAQ: TLRY) before joining Organigram.
In addition, the company’s fiscal discipline and execution, as well as its
solid corporate governance foundation, distinguish it while some other LPs have
met mild to severe consequences for regulatory breaches.
Bloomberg noted that OGI has a fully independent board of
directors (excluding CEO Greg Engel), which is a rarity in the cannabis sector.
The CEO sees good corporate governance as essential to a well-run pot company.
“This is an industry that’s still very much moving from founders and executives
being chairmen or multiple insiders on boards,” Engel told Bloomberg (http://ibn.fm/paDcr). “I think
some of the challenges we’ve seen in the industry have been because of a lack
of governance. You have to have independent governance that has oversight and
holds management accountable.”
Along with the company’s impressive corporate governance
comes its equally notable — and consistent — financial performance. This is
likely due to its team’s adherence to fiscal discipline, something that can be
difficult to find in this industry. Bloomberg noted that, with four quarters of
profitability under its belt, Organigram Holdings is “an anomaly in the
Canadian cannabis market.”
“Organigram has higher margins than most of its peers and
one of the lowest costs per gram in the industry even though it grows indoors,
generally considered the most expensive method of production,” the report
stated. “Chief Executive Officer Greg Engel attributes this to its ability to
get higher yields from its pot plants than companies that grow in greenhouses,
as well as its automated packaging lines. No other large Canadian pot producer
has managed to post such a long string of positive EBITDA.”
In addition, the company recently uplisted to the Toronto
Stock Exchange (TSX) from the TSX Venture Exchange (TSX.V) under the symbol
‘OGI’.
“Graduating to the TSX is a significant milestone for us as
a corporation,” Engel stated in a news release (http://ibn.fm/g63Gj). “Our
stakeholders have an eye on this marketplace, and this graduation will broaden
our reach within the investment community and encourage new investors to learn
more about our business, our growth plans and corporate objectives.”
As a result of many of these developments, OGI has attracted
significant attention. OGI was deemed a “compelling cannabis stock to buy in
August” in a recent article distributed by The Motley Fool (http://ibn.fm/3jeGk). “I
continue to view the long-term prospects for Organigram in a favorable light,”
contributor Keith Speights wrote. “Other Canadian cannabis producers get a lot
more hype right now, but Organigram could be a rising star that will attract
plenty of attention in the near future. What I really like about Organigram is
that its management team exercises fiscal discipline, which is kind of a rarity
in the industry.”
Organigram’s primary facility is located in Moncton, New
Brunswick, and the company is regulated by the Cannabis Act and the Cannabis
Regulations (Canada). Organigram has sales in all 10 Canadian provinces. The
company has developed a portfolio of legal, adult-use recreational cannabis
brands, including The Edison Cannabis Company, Ankr Organics, Trailer Park Buds
and Trailblazer. Additionally, it delivers industry-leading yields and maximizes
quality-cannabis production at one of the lowest cultivation costs per gram*
among publicly reporting Canadian LPs. Organigram is committed to translating
operational excellence into strong financial results and return on investment
for shareholders.
* Cultivation cost per gram is a non-IFRS measure. Please
see the Company’s latest MD&A.
For more information, visit the company’s website at www.Investors.Organigram.ca
NOTE TO INVESTORS: The latest news and updates
relating to OGI are available in the company’s newsroom at http://ibn.fm/OGRMF
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