OrganiGram Holdings Inc (TSXV: OGI) (OTCMKTS: OGRMF) is a really exciting cannabis play that has been running up the charts this year more than tripling in the last 12 months alone. The stock has transformed into a volume leader and current does between $5 and $10 million in dollar volume.

Cannabis is a great place to be; according to a recent report from Arcview Market Research and its research partner BDS Analytics, over the next 10 years, the legal cannabis industry will see much progress around the globe and spending on legal cannabis worldwide is expected to hit $57 billion by 2027. The adult-use (recreational) market will cover 67% of the spending; medical marijuana will take up the remaining 33%. The largest group of cannabis buyers will be in North America, going from $9.2 billion in 2017 to $47.3 billion a decade later. Of course much of this hinges on how laws progress.

OrganiGram Holdings Inc (TSXV: OGI) (OTCMKTS: OGRMF) is a TSX Venture Exchange listed company whose wholly owned subsidiary, Organigram Inc., is a licensed producer of medical marijuana in Canada. Organigram is focused on producing the highest quality, condition specific medical marijuana for patients in Canada. Organigram’s facility is located in Moncton, New Brunswickand the Company is regulated by the Access to Cannabis for Medical Purposes Regulations (“ACMPR”). Organigram has been ranked in the top ten Clean Technology & Life Sciences Sector on the TSX Venture Exchange 50. The Company is led by Greg Engel who used to be CEO at Tilray Canada Inc.

Organigram recently broke ground on its Phase 4 expansion project which will be completed over three different, but concurrently constructed, stages in 2018 and 2019. Phase 4a (31 grow rooms) will come online in April of 2019, increasing the Company’s target production capacity to 62,000 kg/yr. Phase 4b (32 grow rooms) is expected to be ready by August of 2019, increasing the target production capacity to 89,000 kg/yr. Construction for Phase 4c (28 grow rooms), which will bring target production capacity up to 113,000 kg/yr., is scheduled to begin in January 2019. The rooms will be available to Organigram by October of 2019.

Earlier this year Organigram began harvesting from its Phase 2 expansion facility (23 grow rooms) on April 20, 2018 bringing its target production of dried flower equivalent to 22,000 kg/annum. In May the Company launched its adult recreational brand strategy which included house brands such as The Edison Cannabis Company, ANKR Organics and Trailer Park Buds.

Organigram is seeing big growth in sales; last month the Company reported record net sales for both the three-months and nine-months ended May 31, 2018 of $3.7 million and $10.1 million respectively vs. $1.9 million and $3.6 million respectively for 2017.

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The Company has supply agreements for distribution of its cannabis products including with Ontario’s only online retailer. It also has supply agreements in place with Alberta, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island. The Company’s agreement with Newfoundland and Labrador attracted the attention of the biggest player in the Canadian marijuana industry, Canopy Growth. The two companies signed a two-year supply and distribution agreement in which OrganiGram will supply cannabis products to Canopy’s Tweed retail operations in Newfoundland and Labrador.

The Company recently launched a new line of products called Trailblazer that complements Organigram’s premium and organic product offerings. The new product, currently planned to be sold at a slight discount to mainstream priced products across Canada, will be available in milled and pre-rolled varieties and will provide a breadth of low, mid and higher THC products. The brand’s signature Prohibition Blend is a hybrid offering developed using an optimal blend of Acadia, one of the Company’s best-selling sativa strains, and Critical Kush, one of the longest-standing indica strains in the Company’s robust genetic library.

Earlier this month Organigram closed the previously-announced private placement investment in Eviana Health Corporation. Organigram along with an institutional strategic investor each participated 50% in a $10 million debenture offering (the “Debenture Offering”) by Eviana.

Eviana CEO Avram Adizes said “In Organigram we have a strategic ally that will join us as we continue to capitalize on the international CBD market into the future. We have also strengthened our balance sheet as we scale up our production operation and fund our ambitious future growth plans in the international CBD market.

On October 10 Organigram announced its medicinal cannabis plants and growing process has been certified organic with Ecocert Canada.The process of re-certification coincided with Organigram’s significant expansion of its facility to meet the growing and anticipated demand for both mineral and organic production. As part of the process, Organigram submitted a comprehensive action plan to Ecocert Canada, part of the Ecocert group, one of the largest organic certification organizations in the world, outlining the company’s robust segregation design to manage and execute the complexities of producing and processing both streams of product within the same facility.

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Currently trading at a $786 million market valuation Organigram is sitting on a war chest of $31 million in the treasury and $124 million in short term investments. The Company has significant debt and fast growing revenues reporting record net sales for both the three-months and nine-months ended May 31, 2018 of $3.7 million and $10.1 million. Organigram is well positioned to build upon its domestic medical business into becoming a national player in the adult recreational market and a global player in the medical market with current production capacity of 36,000 kg expected to grow to 113,000 kg by the end of next year. Organigram is also one of the lowest, if not the lowest cost producer in the sector with a cost per gram of $0.66 CAD and an all in cost including amortization of $0.80 CAD. We will be updating on Organigram when more details emerge so make sure you are subscribed to Microcapdaily so you know what’s going on with Organigram.

Disclosure: we hold no position in Organigram either long or short and we have not been compensated for this article.