OrganiGram Holdings Inc. (TSXV:OGI) (OTCQX:OGRMF) is leading the cannabis stocks on the TSXV today for the most number of trades. While it's still early in the day, the company's latest announcement seems to have pleased investors. Major cannabis stocks have corrected today and are seeing mostly green on US and Canadian markets.
This is the most stock movement OrganiGram shares have seen in 2019. Year-to-date, the cannabis stock is up nearly 25% on the TSXV. On the OTCQX, its shares are up over 26% for the year.
OrganiGram Introduces OrganiCare
Early this morning, OrganiGram announced new changes to its compassionate care model. The company has developed OrganiCare, a program built to improve the access of medical cannabis to low-income patients. OgraniGram Holdings has put these measures into effect immediately and patients who earn an annual income of less than $35,000 per year will qualify for OrganiCare.
The company's new program will offer patients a 30% price discount on all dried medical marijuana products and oils. OrganiGram used to offer a 25% percent discount for patients that made under $30,000 annually.
"We understand cost can be a barrier to medication for patients," says Greg Engel, CEO of OrganiGram. "It is important to us to do what we can to improve access for patients who need it the most. It's our hope that OrganiCare will allow a greater number of patients to access their medicine."
OrganiGram Class-Action Lawsuit
Despite the positive news for the New Brunswick-based cannabis company, a class-action lawsuit has been given the green light by a Nova Scotia judge. OrganiGram is New Brunswick's largest licensed supplier of medical marijuana. In this lawsuit, customers are complaining that the products purchased from the company were making them sick back in 2016.
The OrganiGram lawsuit came about after two large-scale recalls occurred with the company's products in late 2016 and early 2017. Myclobutanil and bifenazate were detected in the company's products. Both of these substances are unauthorized pesticides used on cannabis under the Pest Control Products Act. Currently, OrganiGram's organic certification is suspended.
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OrganiGram has made a statement about the class action lawsuit, saying:
"Organigram has insurance to cover the cost of legal fees associated with the defense of the class action. Insurance coverage may also cover some or all of any monetary damages associated with any resolution of this matter. While the ultimate outcome of any Court process is difficult to ascertain, Organigram management does not anticipate that the class action (including the resolution thereof) will impact its business or operations in any material manner."
OrganiGram Stock Movement
According to Yahoo Finance, OGI is currently trading on the TSXV at $6.46 a share, up +$0.26 (+4.19%). On the OTCQX, the cannabis stock is trading at $4.78 a share, up $0.10 (+2.18%).
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