Organigram Rivals Canadian Competitors – But What About Its Annual Production Volumes?

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Organigram

A list of big market movers in the marijuana sector includes Organigram, a Canadian cannabis firm in New Brunswick that’s turning heads.

An article in Smallcap Power today talks about how this company, with a market cap of under $700 million, is rivaling market leaders like Canopy Growth Corp., which has a market cap of over 10 times that size!



Smallcap Power reports that after Canada’s recent legalization move, the Organigram company has MOUs (memoranda of understanding) with New Brunswick and Prince Edward Island, and is moving to supply quite a bit of herb to those recreational markets, to the tune of 24% of market share in both provinces. That’s more than the penetration of either CGC or Aurora, two much more visible brands in the market.

“A strong brand presence in the Atlantic may provide the company with a defensive moat making for a potential acquisition target,” the article contends, citing year-to-date returns of 17%.

If you’re interested in learning more about Organigram as a cannabis producer, you might be a little confused by press reports.

Another detail that Smallcap Power mentions in its December coverage is the estimated annual production out of the company’s 134,000 square-foot facility. The Smallcap Power editorial desk cites estimates of 22,000 kg per year.

Go back to Motley Fool coverage from September, and you find this:

“Organigram’s current production capacity is a respectable 36,000 kg per year,” writes Keith Speights. “However, the company should be on track to boost that capacity to 62,000 kg per year by April 2019.”

Ok, it might not be that strange to have revised production numbers going up – but different production numbers going down, especially by that month, doesn’t seem right. What is the actual annual production?

When in doubt, you have to head back to the source and get the numbers directly from the horse’s mouth – that’s where the plot thickens.

Scouring the news database of the company’s website, we couldn’t find any press releases recently showing production volumes.

Visitors also have to enter a significant amount of information to prove they are of age in order to view pages on the corporate site, yet another gatekeeping task.

We called Organigram’s office, and were told there is no option for contacting a media department by phone – so now, our email question on production volumes is patiently waiting in some digital queue.



Keep an eye out for future news about what Organigram’s production volumes actually are, and what we can expect from this dark horse marijuana stock.