Organigram Q4 disappoints analysts as Ontario retail woes lead to lower sales, inventory writedown
Organigram reported fourth-quarter results Monday, missing analysts’ revenue and profit expectations ahead of the company’s launch of next-generation products. The Moncton, N.B.-based pot producer reported $16.3 million in its Q4, the same figure it announced in a quarterly pre-release earlier this month, while its net loss came in at $22.5 million. Organigram pointed at Ontario’s lack of retail stores as part of a sequential quarterly revenue decline, while also booking a $3.7 million write-down on inventory it didn’t sell in the country’s most populous province. Organigram also preserved about $41 million in capital by halting construction on the last phase of its Moncton facility, which would add about 25,000 kilograms of growing capacity [per year?]. Raymond James analyst Rahul Sarugaser said the worst may be over for Organigram, and wrote that the company remains “very well positioned to survive the industry’s forthcoming turbulence and emerge as a sector leader” in a research note to clients.
Canopy Growth making pot-infused drinks with newly-licensed bottling facility
Canopy Growth is ready to begin making its lineup of infused beverages after announcing Monday that it received the proper licences from Health Canada for its bottling facility. Canopy said in a statement that its bottling facility is currently operational. The company plans to produce 11 cannabis-infused beverages during its initial wave of production with more expected to be launched throughout the year. The company says it expects to ship that inventory to provinces “within weeks.” BNN Bloomberg visited the bottling facility prior to production, when the company showed off its bottling and packaging line to media.
New Jersey pot player doesn’t want legalization to be voted on in 2020
NJ Weedman isn’t happy. New Jersey pot advocate Ed Forchion is upset that the U.S. state is ending its pans to pass a bill to legalize pot sales and making its potential approval subject to a referendum on the 2020 ballot. Bloomberg News reports that Forchion – who sells pot illegally at a restaurant located near Trenton City Hall – says that if pot is legalized through a voter ballot, it may come with further regulations that favour big corporate-backed interests with millions of dollars to spend on applications. Meanwhile, he says, people that participate in a legal business must have no felony convictions. “We know our market, and they’ll restrict us so much that we can do nothing for the regular street buyers,” said Anthony Rico, a friend of the NJ Weedman.
Trinidad and Tobago eyes cannabis revenue potential with new proposed legislation
Trinidad and Tobago is looking to decriminalize and regulate cannabis in a significant policy shift for the Caribbean’s largest economy. Cannabis Wire reports that the country’s attorney general introduced two bills that would regulate the consumption, production, and distribution of cannabis and established the framework for an industry built around the plant. Cannabis Wire reports that with Trinidad and Tobago now looking to regulate the drug, it could have significant ripple effects on the region’s tourism and agriculture industries, even though other Caribbean nations like Jamaica have already decriminalized cannabis possession.
– The price of a gram of cannabis in Canada, down 0.6 per cent from the prior week, according to the Cannabis Benchmark’s Canada Cannabis Spot Index. This equates to US$2,198 per pound at current exchange rates.
Cannabis Canada is BNN Bloomberg’s in-depth series exploring the stunning formation of the entirely new — and controversial — Canadian recreational marijuana industry. Read more from the special series here and subscribe to our Cannabis Canada newsletter to have the latest marijuana news delivered directly to your inbox every day.