Organigram Global Inc Stock Price, News & Analysis

Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI) has closed the second tranche of a C$124,559,674 strategic equity investment by BAT subsidiary BT DE Investments Inc. The investor acquired 4,429,740 common shares and 8,463,435 Class A preferred shares at C$3.2203 per share, for gross proceeds of USD$30,821,684.69. This follows the first tranche closing on January 23, 2024. The investment funds the 'Jupiter' strategic investment pool, which has already made two investments: USD $2 million in Open Book Extracts and €14 million in Sanity Group GmbH. The final tranche is expected around February 28, 2025. Post-closing, the investor owns 30% of common shares and 100% of preferred shares, maintaining the 30% ownership threshold.

Organigram Holdings, a leading cannabis producer, reported a strong Q3 Fiscal 2024, with net revenue of $41.1 million, up 25% YOY. The company achieved an adjusted EBITDA of $3.5 million, a significant improvement from a $2.9 million loss last year. Net income was $2.8 million, compared to a $213.5 million loss in the prior year. The pro-forma cash position stands at $173 million.

Key achievements include a strategic investment in Germany's Sanity Group, the completion of a clinical study on FAST™ nanoemulsion technology, and leading market positions in various cannabis product categories in Canada. The company also signed new international supply agreements in Australia and the U.K.

Financial highlights include a gross margin improvement to 36%, a 22% reduction in SG&A expenses, and a substantial increase in market share across Canadian provinces.

Organigram continues to focus on operational efficiency, product innovation, and international expansion to drive long-term shareholder value.

Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI) has completed a landmark clinical pharmacokinetic study on its FAST™ (Fast Acting Soluble Technology) nanoemulsion technology. The study, conducted through the Product Development Collaboration, revealed promising results:

1. Up to 50% faster onset of cannabis effects compared to traditional ingestibles
2. Improved bioavailability with up to double the cannabinoid delivery at peak
3. Potential for more predictable duration of effects

Organigram plans to leverage this data to substantiate functional technology claims and expects to commercialize FAST™ in fall 2024, starting with gummies. The company views this innovation as a competitive advantage for its ingestible portfolio, addressing key consumer pain points in dosage control and experience predictability.

Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI), a leading licensed cannabis producer, has announced it will report its third quarter fiscal 2024 earnings results on Tuesday, August 13, 2024, before the market opens. The company will host a conference call to discuss the results at 8:00 am Eastern Time on the same day. Interested parties can register for the call using the provided link. A webcast of the call will also be available, with a replay accessible for 90 days following the event on Organigram's investor relations website.

Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI) has appointed Craig Harris to its Board of Directors, expanding the board to 10 members. Harris, currently the Assistant General Counsel at British American Tobacco plc (BAT), brings over 20 years of experience as a commercial lawyer. His expertise includes corporate law, regulatory engagement, and major global projects.

Harris has contributed to significant BAT initiatives, including the $49 billion merger with Reynolds American Inc. and the establishment of BAT's partnership with the McLaren Formula 1 team. He serves on several BAT company boards and is part of the Investment Committee for Btomorrow Ventures, BAT's venture capital arm. Harris's achievements have been recognized by Legal 500 UK, naming him UK Mergers & Acquisitions Individual of the Year in 2018.

Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI) has completed a partial third tranche investment of US $1M into Phylos Bioscience Inc., a U.S. cannabis genetics company. This strategic funding aims to expand Organigram's product portfolio, focusing on auto-flower and rare cannabinoid offerings. Key points include:

1. Phylos to deliver 42 unique auto-flower seed varietals by January 31, 2025.
2. Organigram gains access to high-potency CBG, CBC, and CBDV seed-based cultivars.
3. Exclusive rights in Canada until May 2028 to commercialize THCV from Phylos' cultivars.
4. Organigram has launched six THCV SKUs across four formats.
5. Total investment in Phylos now at US $7M, with an additional US $1M pending milestone completion.

Organigram Holdings has made a significant investment of €14 million in Sanity Group, a leading German cannabis company, marking its strategic entry into the European market.

This investment includes €11.5 million in an unsecured convertible note and €2.5 million for equity interest, with an option to invest an additional €3 million. This collaboration also includes a new supply agreement with higher volumes and plans to commercialize Organigram’s brands in Germany.

Sanity Group, which holds a 10% share of the German medical cannabis market, is expected to benefit from recent legal reforms in Germany and is expanding its footprint in Switzerland through a recreational cannabis pilot program. The investment aims to leverage Sanity's robust distribution network and regulatory advancements in Europe's cannabis market.

Organigram has signed a three-year supply agreement with Avida Medical in the UK, its second international medical cannabis customer in the region.

Under the agreement, Organigram will supply 1,700 kilograms of high-quality cannabis flower, with 500 kilograms expected in the first year.

Avida Medical will gain exclusivity for three of Organigram's cannabis strains in the UK.

This agreement aligns with Organigram's strategy to expand beyond Canada, adding to its existing international agreements in Australia, Germany, and Israel.

Organigram (NASDAQ: OGI) reported a 21% YoY growth in recreational net revenue to $33.1 million for Q2 FY2024. Despite this, overall net revenue decreased by 5% to $37.6 million due to a decline in international sales. The company closed the first tranche of a $41.5 million private placement, raising its cash balance to $83.6 million. The firm also completed an oversubscribed offering for $28.8 million post-quarter-end, bringing its pro-forma cash position to about $195 million.

Organigram maintained market leadership in various product categories in Canada and expanded its international footprint, including new shipments to Germany and the UK. However, the quarter saw a net loss of $27.1 million, an increase from $7.5 million YoY, and a negative adjusted EBITDA of $1.0 million, down from $5.6 million YoY.