Organigram, a Canadian cannabis producer that trades on a major U.S. exchange, reported net revenues of 24.8 million Canadian dollars ($18.6 million) for the fiscal third quarter ended May 31, up from CA$3.44 million in the same period last year.
The revenue total was lower than expected based on timing of shipments into Quebec, sluggish sales in British Columbia and a slower reorder rate in Ontario, according to Corey Hamill, managing director at Toronto-based Paradigm Capital.
The results were also impacted by a temporary decline in yield per plant, Organigram said.
The company expects higher yields and increased efficiencies and economies of scale to decrease the cost of cultivation in Q4 fiscal 2019 and Q1 fiscal 2020.
Organigram, which trades on the Nasdaq under the ticker symbol OGI, initially dipped after results were released before market open but recovered into positive territory.
More details on the results can be found here.