Organigram stock is down nearly 10% during Thursday trading, despite Organigram Holdings (TSX:OGI) (NASDAQ:OGI) being recognized at the Excellence in Manufacturing Consortium (EMC) Awards ceremony in Toronto.
Organigram Receives Outstanding Member Contribution Award
Organigram Holdings was honored with an Outstanding Member Contribution Award for delivering exemplary support to the EMC, which recognizes organizations that demonstrate outstanding achievement in manufacturing. The EMC is a Canadian non-profit organization with over 13,000 members that is dedicated to helping manufacturers develop in growing international marketplaces. Despite the award, Organigram stock is currently trading in the red, down nearly 10% to $2.85.
“Producing high-quality cannabis in a state-of-the-art indoor environment, Organigram operates in an interesting cross-section of horticulture, consumer packaged goods and manufacturing,” said Organigram’s Jeff Purcell in accepting the award. “We are very proud to accept this award and support EMC, a group that sets the standard for manufacturing excellence in Canada.”
Is a Scandal Coming?
Interestingly, Organigram Holdings hosted 50 EMC members at an educational event at its Moncton facility in September. Organigram stock took a hit last week after reports of “elevated bacteria” in the cooling towers at the very same facility, which has been potentially linked to an outbreak of Legionnaires’ disease in the town that led to the hospitalization of 16 people. Public health bodies in New Brunswick have yet to release the source of the outbreak; however, emails from Organigram’s head of HR show that the dates of the outbreak and discovery of bacteria coincide.
Organigram Stock Dropping in Line with Market
However, the decline in Organigram stock is reflective of the market in general today, with pot stocks in the red across the board. In fact, cannabis stocks have slumped to their lowest levels since 2017 with HEXO (TSX:HEXO) (NYSE:HEXO) leading the slide after drastically lowering its earnings expectations for fiscal 2020. Meanwhile, Tilray (NASDAQ:TLRY) dropped as much as 12%, with Canopy Growth (TSX:WEED) (NYSE:CGC) and Cronos Group (TSX:CRON) (NASDAQ:CRON) down 8.5% and 6% respectively.
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