OrganiGram Stock Looks Promising: Low-Cost Production & Partnerships

OrganiGram stock

OrganiGram stock is currently among the hottest Canadian marijuana stocks. So far OrganiGram Holdings (TSXV:OGI) (OTCQX:OGRMF) has been ranked as the second best-performing marijuana stock in the country.

OrganiGram Stock Almost Doubling

More investors are starting to be keen on OrganiGram stock, which has been growing as a result of various developments. Although the company is unable to match up against competitors in terms of production capacity, it nonetheless compensates for this with low costs and solid production capacity. Currently, OrganiGram Holdings has an annual production capacity of 62,000 kg and expects this to grow to 133,000 kg this year. Cost of production of dried flower is $0.55 per gram, and in Q1 2019 the company averaged 153 grams per harvested plant.

The growing recreational marijuana market presents a big opportunity for OrganiGram stock to grow. With supply agreements already in place in over 10 provinces, the company is better positioned to benefit from the booming market. With the expected launch of cannabis edibles in the Canadian market this year, OrganiGram expects to benefit even more. The company has teamed up with the Smartest Kitchen in Canada for the production of chocolate products.

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Capitalizing on Cannabis Markets

OrganiGram is capitalizing on the growing CBD and international markets by forming strategic partnerships. One such partnership is with Alpha-cannabis, based in Germany. OrganiGram also signed a deal to purchase 25% of Eviana’s hemp CBD oil. Another partnership is with biotech company Hyasynth, which has developed a technology of producing CBD through engineered yeast strains. This will help OrganiGram Holdings to produce pure CBD at half the cost of extracting from plants.

OrganiGram stock has been doing well compared to other Canadian marijuana stocks. Backed by its share price, there is a high expectation about the growth of OrganiGram stock. The company has a market capitalization of $906 million, and its valuation looks appealing compared to its peers.

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