Recently, Canada’s government voted on and passed the legalization of cannabis nation-wide. The decision to legalization cannabis for the entire nation has brought massive attention to Pot Stocks. Companies around the globe have been racing towards acquiring licensing, production facilities, and lucrative partnerships for distribution and commercialization. Speculation on where the market will go has sent shares of some of these stocks up over 500% in under a year.
You may be thinking that it’s too late to get into these Pot Stocks, but the reality is there are still prime opportunities out there to take advantage of. One candidate for some future growth is OrganiGram Holdings Inc. (OTC:OGRMF).
OrganiGram Holdings’ subsidiary, Organigram Inc., is a fully licensed medical cannabis producer in Canada. The company already has a sizable growing capacity. Originally the company underestimated their growing potential but in March, OrganiGram announced their forecast was a bit under par and expanded their production estimate to 113,000 kilograms per year. This 113,000 kg figure is set to be possible by 2020, once their new facility is completed.
What is impressive, is that OrganiGram anticipates 113,000 kilograms per year out of a 490,000 sq. ft. Many producers are struggling to maximize on the space they have, but due to OrganiGram’s unique 3-tier approach to cultivation they are able to produce more per sq. feet.
Canada’s not the only new marijuana market that is being tapped into. OrganiGram has recently set their sights on Germany for its next round of expansion. The company recently acquired 25% of Pharma GmbH and plan to form a supply agreement between the two companies upon closing of the deal. The agreement will have GmbH supply OrganiGram with CBD isolate (a marijuana extract) while OrganiGram will supply GmbH with dry cannabis flower.
Although they’ve seen some considerable growth already, OrganiGram Holdings is still a small-cap stock that has flew relatively under the radar over the last few months. As companies like Tilray rose from $20 bucks to well over $150 bucks, OrganiGram traded between $3 and $5.
OrganiGram shows absolutely huge potential to compete against the top-dogs of the industry. Although their current grow capacity is nothing spectacular, their efforts to expand their grow op by 2020 and their move into Germany proves they are here to stay. The company also seems to have a unique and efficient 3-tier growing system which allows them to pump out more product per sq. feet. than other companies.
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