Organigram reported positive adjusted EBITDA of 1.6 million Canadian dollars ($1.27 million) on the back of growing international medical cannabis sales in the second quarter, marking a key milestone for the Moncton, New Brunswick, producer.
British American Tobacco is investing another 6.35 million Canadian dollars ($5.1 million) in Organigram, increasing its stake in the Atlantic Canada-based cannabis producer to 19.5%, the companies announced.
Retail prices for Canadian recreational cannabis products fell across the board in 2021, as retailers and producers sold them for less to entice price-sensitive consumers and capture market share.
Organigram is among a handful of large Canadian cannabis producers that managed to take more overall share of Canada’s cannabis market in 2021 via nondilutive organic sales growth.
How did the Moncton, New Brunswick-based licensed producer do it?
New Brunswick cannabis producer Organigram’s loss narrowed to 1.3 million Canadian dollars ($1 million) as adult-use sales soared over 70% compared to the comparable year-ago period, according to the company’s first-quarter financial results released Tuesday.
Analysts have slashed hundreds of millions of dollars off their 2022 sales forecasts for three Canadian cannabis producers, reflecting an increasingly competitive landscape across the adult-use industry, falling overall prices and poor execution by some executive teams.
Canadian cannabis producer Organigram increased its investment in cannabinoid biosynthesis company Hyasynth Biologicals, the companies announced.
Canadian cannabis producer Organigram Holdings acquired Quebec producer Laurentian Organic in a deal worth at least 36 million Canadian dollars ($27.8 million).
Moncton, New Brunswick-based Organigram Holdings is growing its share of cannabis for Canada’s legal market, the company said in a corporate update on Monday, while most other large licensed producers are seeing their share decline.
