Organigram stock is unmoved today despite new documents highlighting discussions between the New Brunswick health department and Organigram Holdings (TSX:OGI) (NASDAQ:OGI) as the province investigated an outbreak of Legionnaires' disease in Moncton last year that led to 16 illnesses.
Organigram Stock Dropped 20% After Initial Breakout
An outbreak of the severe form of pneumonia in Moncton, where Organigram is located, began in August of last year and was traced to the cannabis firm after an email was sent to staff on the evening of August 13 stating that “elevated bacteria counts” were found in several cooling towers. The source of the outbreak was confirmed as originating "from cooling towers located at a business in western Moncton" by the region's Chief Medical Officer, Dr. Yves Léger. News of the outbreak sent Organigram stock tumbling over 20%.
Now, over 230 pages of documents obtained by CBC News show a range of correspondence as both the firm and local officials worked to get the outbreak under control. These documents range from lab testing results, discussion of various testing methods, notice of what would be said at upcoming news conferences, to outlining how Organigram Holdings could be consulted on what to release in response to right-to-information requests. Organigram stock is trading for $3.19 following the report, up around 0.3%.
Heavily Redacted Documents
The documents are heavily redacted and do not actually name the company after Dr. Léger decided not to release that information as the cooling towers had been identified and cleaned, resolving the issue. The company has neither confirmed nor denied whether it was the source of the outbreak, despite leaked internal emails clearly showing that the company was responding to a bacteria outbreak at its facility and all afflicted patients confirming they were in the area.
With Organigram stock down a massive 70% in the last year as the cannabis industry battles major headwinds, it's hardly surprising to see the company try to keep the outbreak under wraps. Dr. Léger did say that Organigram Holdings was "very cooperative;" however, the records released end by September 4, the day before CBC's right-to-information request that resulted in their disclosure was filed.
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