Ontario-based medical marijuana company OrganiGram Holdings Inc. (OGRMF) reported second-quarter results with record gross sales of C$3.2 million, a 123% increase over the same time period in 2017. The company also delivered net income in the second quarter of C$1.0 million over last year’s loss of C$5.7 million. The company also turned a corner on the earnings per share with the second-quarter delivery of diluted C$0.008 over last year’s loss per share of C$0.059.
“We are incredibly proud of what we have achieved in Q2 as we registered record sales and a profit for the quarter,” said Greg Engel the company’s CEO, “but we have also significantly bolstered our balance sheet and from an operational and sales and marketing perspective we are well positioned to take full advantage of not only the medical market but also the burgeoning adult recreational and international opportunities as well.”
Dried cannabis flower sales increased 68% in the quarter to 238 grams. But the real story was the 297% increase in sales in cannabis oil with 552 ml being sold versus last year’s 139ml.
While the company’s long-term debt rose C$3 million from year’s end to C$96 million, OrganiGram is sitting on C$178 million in cash.
The company said that the Phase 3 expansion is expected to be finished by June 1, 2018, and it will be able to start putting the first cannabis plants inside. This will bring the company’s run-rate capacity to 36,000 kg a year. In addition to that OrganiGram said that it will launch its adult-recreational brand strategy on or about May 15, 2018. The company also said it would be announcing one or more strategic international investments in the third quarter.
OrganiGram stock was lately trading at $3.08 on the OTC Markets. This is lower than its 52-week high of $4.56 that was reached in the early part of 2018, but much improved from the year’s low of $1.49.