With little fanfare and few headlines, a small Canadian cannabis company is slowly – and quietly – on track to become the country's third-largest marijuana company, right behind one of the industry's most recognizable names -Canopy Growth (NASDAQ 🙂 (TSX:).
That's the situation with OrganiGram Holdings (NASDAQ:) (TSX:), which revealed its latest news last week, surprising market observers.
The New Brunswick-based company reported first quarter results on Jan. 11. (US$24.3 million), the highest in the company's history. ). Although this category is relatively small, it could play a growing role in the short to medium term. On the other hand, OrganiGram was able to rein in its net loss for the quarter, reducing it to C$1.3 million (US$1.04 million) compared to $34.34 million (US$27. 42 million) for the same period in the previous year. Shares of OrganiGram have fallen slightly since the earnings report, which closed Friday on the NASDAQ in New York at $1.64, and yesterday at C$2.06 in Toronto.
OrganiGram share has lost about 9% in the past year. that much-discussed US federal law would be the big game-changer in the industry, opening the doors to the world's largest cannabis market.
Now, at the start of a new year, with that optimism thoroughly knocked back, investors have narrowed their focus and are now looking into how Washington's legislative agenda will affect a specific sector of the industry – multi- state operators. These companies operate in two or more states that have already legalized marijuana. And they could be the biggest winners if Congress finally passes the Safe Banking Act, the law that gives cannabis companies full access to banking services.
But there's still a big question mark about this move. Last month, the law was removed from an omnibus defense spending bill. Still, the likelihood of greater access to financial services is more likely this year. And that could boost the ability of multi-state operators to expand their operations and reach. This includes companies like Trulieve Cannabis (OTC:) (CSE:) and Curaleaf (OTC:) (CSE:).
Trulieve's stock has fallen slightly so far this year. It closed at $25.40 Friday, up about 1.5%. The latest quarterly report indicated a 64% year-over-year increase in net revenue to US$224.1 million as it posted its 15th consecutive profitable quarter. year, it closed a little last Friday at US$8.23.
In its latest report covering the three-month period ending September 2021, it posted revenue of US$317 million, a 74% increase from US$182 million recorded in the same quarter of the previous year. Both stocks are down about 45% in the past 12 months, making them an interesting place for those looking for an inviting entry.
