OrganiGram Holdings Inc. (TSXV:OGI) (OTCQX:OGRMF) has made quite splash this week on both the TSXV and OTCQX. The stock has corrected this morning but made significant share gains yesterday. Despite its correction, the cannabis company made another significant announcement this morning. Today, we'll take a closer look at this announcement and the OGI and OGRMF stock movement.
OrganiGram Signs Deal with Valens GroWorks
OrganiGram Holdings sells dried cannabis and cannabis oil in Canada. The company also sells its products wholesale and online. Yesterday, the cannabis company announced its Q1 2019 revenue that grew 287% in a quarter. After news broke, the OGRMF stock went up 12%.
This morning, OrganiGram made another significant announcement that doesn't seem to have investors as impressed as the previous day. This announcement, however, is much more crucial to the future success of the company—rather than just reported earnings.
A few hours ago, OrganiGram announced its multi-year cannabis extraction agreement with Valens GroWorks Corp. (CSE:VGW). Under this new agreement, Valens will occupy space in OrganiGram's main Moncton facility. The cannabis company will extract cannabis flowers and trim from OrganiGram, and will also produce hemp extract concentrate.
"Looking ahead to another year of unprecedented firsts in the national and global cannabis industries, our growth strategy is aggressive," said Greg Engel, OrganiGram CEO. "A key element of that success is partnerships with companies like Valens who can offer the capacity, quality and expertise to help ensure we deliver on our ongoing commitment to meeting the increasing demand of the global medical and adult recreational cannabis markets."
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The agreement between Valens and OrganiGram is effective immediately.
OGI and OGRMF Stock Movement
According to Yahoo Finance, OGRMF has rebounded. At the time of writing, the cannabis stock is trading at $5.44 a share, up +$0.13 (+2.49%) on the OTCQX. On the TSXV, OGI is currently trading at $7.20 a share, up +$0.11 (+1,55%).
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