OrganiGram's stock rises as Canadian pot company's revenue tops analyst estimate

By Steve Gelsi

OrganiGram makes inroads into the European market through a minority stake in Germany's Sanity Group

OrganiGram Holdings Inc.'s stock was up by 23% on Wednesday after the Canadian cannabis producer turned a profit and reported better-than-expected revenue.

The stock is on pace for its largest percent increase since March 11, 2021, when it rose about 39.8%, according to Dow Jones Market Data.

Toronto-based OrganiGram (OGI) (CA:OGI) swung to third-quarter net income of C$2.82 million ($2.05 million), from a loss of C$213.45 million in the year-ago quarter.

Net revenue increased by 25% to C$41.06 million, well ahead of the FactSet consensus estimate of C$39.4 million.

The company said its results were strong and that it has made inroads into the European market with a minority stake in Germany's Sanity Group GmbH.

OrganiGram and British American Tobacco (UK:BATS) continue to work together through a product-development agreement on edibles, vape and beverage businesses, as well as "new disruptive inhalation formats," the company said.

Organigram's stock rose 33 cents to $1.77 a share. The stock is on pace for its largest percent increase since March 11, 2021, when it rose about 39.8%.

Prior to Tuesday's moves, OrganiGram's stock has risen 9.9% in 2024.

-Steve Gelsi

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08-13-24 1416ET

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