Jun 24, 2019 Maria Ohle

OrganiGram Stock Rises on Licenses for 17 Additional Grow Rooms

OrganiGram Stock

OrganiGram stock is on the rise on the TSXV at present. Up 1.66% at the time of writing, shares are swapping hands for $8.55 CAD. The market is reacting to the news that OrganiGram Holdings (TSXV:OGI) (NASDAQ:OGI) received approval from Health Canada to license 17 additional cultivation rooms at its Moncton facility.

Let's check this out.

OrganiGram Stock on the Rise

It's simple really; the more cultivation space afforded the company, the more output OrganiGram should produce. The additional space now represents 14,000 kg annually of increased target production capacity, bringing the licensed production capacity to a total of 61,000 kg annually.

According to the press release, Greg Engel, CEO of OrganiGram, said the following on the news:

"Sustainable growth, exceptional quality, and constant innovation are the pillars of our overall strategic approach [...] We are proud to continue to increase our physical capacity to meet the needs of cannabis consumers across the country while also bringing new thinking and technology to our production."

>> Cannabis and Blockchain: How Pot Stocks are Embracing Technology

OrganiGram Stock: Further Momentum Ahead?

OrganiGram Holdings has had a bright 2019 thus far, and it looks set to continue. Shares have already doubled year-to-date, and recently, the company shipped its first cannabis products to the province of Quebec, marking the company's distribution presence in all 10 Canadian provinces.

In addition to this, OrganiGram has proven that its production costs are among the lowest in the industry. It does this by growing upwards—utilizing all space possible by employing three tiers of growing space. The result of this is a yield per square foot that is twice that of the industry average: 231 grams per square foot.

All-in-all, this affords the company greater production margins than many of its competitors, and this, in turn, should equal more profits for investors.

Cannabis Derivatives

Having an increased output at a lower production cost than its competitors puts OrganiGram in a strategic position for phase II legalization in Canada, expected in October. With distribution already established across all 10 Canadian provinces, and the greater return expected from cannabis derivative products, OrganiGram Holdings is in line to see increased profits into 2020.

What are your thoughts on OrganiGram stock? Is this company on your radar?

>> Read More OrganiGram News

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