There has been quite the sell-off of OrganiGram Holdings (TSXV:OGI) (OTCQX:OGRMF) stock since the beginning of this week. The company has had a massive fall from grace, dropping from $5.66 USD on Monday, to today’s current price of $4.31.
And the stock continues to drop; down almost 13% on the day. There is no particular reason for this fall other than a market-wide correction. Other major names are also down; Aphria (TSX:APHA) (NYSE:APHA) has dropped 16% today, for example. So the marijuana stock market is having a ‘bad week.’ These happen. What’s important is that business is still booming for OrganiGram.
OrganiGram Holdings in Saskatchewan
And as is the current situation for others in the field, business operations are actually going the opposite way than the stock. Case in point, OrganiGram recently announced further expansion of its distribution footprint. The company has become an official cannabis supplier for the province of Saskatchewan. It has officially completed the registration process with the Saskatchewan Liquor and Gaming Authority.
Tim Emberg, Senior Vice President of Sales and Commercial Operations of OrganiGram Holdings, said the following:
“We are pleased to have been selected as an official supplier of cannabis in Saskatchewan […] We look forward to working with retailers and key distributors to help ensure the success of the adult recreational market in the province.”
The news actually benefited OGI stock trading volume, boosting it 21% above its average volume levels.
Looking at OrganiGram Holdings’ fundamentals, the company is primed to do well:
- Market capitalization is $528.52 million
- Cash on the books of $155.8 million
- Current liabilities of $9.1 million
- 12-month revenues of $12.2 million
- Year-over-year quarterly revenues growing at 94.3%
It is very possible that OGI stock will do even better in 2019.
About OrganiGram Holdings
OrganiGram produces and sells medical marijuana to individuals and physicians in Canada. It offers marijuana plants, seeds, and cuttings; cannabis oil; and dried flower and cannabis.
The company sells over the phone and on its online store. In addition to exporting its products, the company also operates healing centers that offer treatments for post-traumatic stress disorders, chronic pain, and trauma therapy.
Featured Image: Depositphotos/© Elnur_