Today has seen a couple of cannabis companies jump in stock price in response to news developments, with Organigram Holdings Inc (TSXV: OGI) being one of the biggest winners. As one of Canada’s leading cannabis producers, the company announced today that it had signed an agreement with the province of Quebec to supply the area with cannabis. In doing so, Organigram will now be a supplier of all ten provinces in the country, entering the ranks of a select few producers in the country.
The announcement is a big deal for the cannabis producer, as based on public information currently available, it makes Organigram one of three licensed producers that have distribution agreements with all Canadian provinces. The other two are Canopy Growth Corp (TSE: WEED)(NYSE: CGC) and Aphria Inc (TSX: APHA)(NYSE: APHA).
“Organigram’s growth strategy has always focused on establishing a strong national footprint and building our brand presence with the Edison Cannabis line nationally,” said Organigram’s CEO Greg Engel. “We are proud to work with our partners across the country to help ensure Canadians have access to a reliable supply of premium cannabis products for both medical and adult recreational use. We look forward to continuing to build on these relationships as we look ahead to the legalization of cannabis edibles.”
In response to the news, shares of Organigram surged just under 10 percent by the end of today’s trading session. The company was one of today’s biggest movers, alongside Aurora Cannabis (TSE: ACB)(NYSE:ACB) which announced it had entered the Portuguese cannabis market.
“We are pleased to work with the Société québécoise du cannabis (SQDC) and deliver products that will be needed to meet the demand of its customers,” added Tim Emberg, Senior Vice President of Sales and Commercial Operations at Organigram.
The company has had a history of surging stock prices in response to news developments. Back in January when the company announced its financial results for Q4 which included a 287 jump in sales, the stock price surged over 18 percent. Just a few days ago, the company’s CEO spoke in an interview where it expected to double its sales in Q2 of 2019. Investors and speculators alike are keeping watching for the day those results come out, as most expect the company’s stock to see another surge in value on that day in response to the news.
Organigram Holdings Inc Company Profile
Organigram Holdings Inc. is a TSX Venture Exchange listed company whose wholly owned subsidiary, Organigram Inc., is a licensed producer of cannabis and cannabis-derived products in Canada. Organigram is focused on producing the highest-quality, indoor-grown cannabis for patients and adult recreational consumers in Canada, as well as developing international business partnerships to extend the company’s global footprint.
Organigram has also developed a portfolio of legal adult use recreational cannabis brands including The Edison Cannabis Company, Ankr Organics, Trailer Park Buds and Trailblazer. 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 Holdings