Are Investors Missing The Forest? 35% Stock Drop Masks The International Potential Of This Weed Company
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 14 2024
0mins
Should l Buy OGI?
Source: Benzinga
Company Performance: InterCure Ltd. reported H1 2024 revenues of 126 million NIS, exceeding estimates but significantly lower than pre-October 2023 levels due to disruptions at its southern Israeli facility. The company anticipates a return to full operational capacity soon and projects double-digit sales growth in H2 2024.
Financial Outlook: Despite a drop in cash reserves from 111 million NIS to 21 million NIS and an increase in net debt, InterCure's EBITDA for H1 2024 was stronger than expected at 17.6 million NIS, aided by government compensation. The stock valuation remains attractive, trading at 1x sales and 8x EBITDA for CY25.
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Analyst Views on OGI
Wall Street analysts forecast OGI stock price to rise
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 1.340
Low
2.36
Averages
2.64
High
2.91
Current: 1.340
Low
2.36
Averages
2.64
High
2.91
About OGI
Organigram Global Inc. is focused on producing cannabis for adult recreational consumers, as well as developing international business partnerships. It has also developed and acquired a portfolio of legal adult-use recreational cannabis brands, including Edison, Holy Mountain, Big Bag O' Buds, SHRED, SHRED'ems, Monjour, Tremblant Cannabis, Trailblazer, BOXHOT, Collective Project, Fetch and DEBUNK. It operates facilities in Moncton, New Brunswick and LacSuperieur, Quebec, with an edibles manufacturing facility in Winnipeg, Manitoba. It operates two additional cannabis processing facilities in Southwestern Ontario: one in Aylmer and the other in London. The facility in Aylmer houses CO2 and Hydrocarbon extraction capabilities, and is optimized for formulation refinement, post-processing of minor cannabinoids, and pre-roll production. The facility in London is optimized for labeling, packaging, and national fulfillment. Its subsidiaries include Organigram Inc. and Motif Labs Ltd.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Organigram Receives ISS Support for Sanity Acquisition
- Strategic Rationale: ISS highlighted that the acquisition of Sanity positions the combined company to benefit from increased scale, geographic diversification, and enhanced market presence, thereby strengthening its financial health and cash flow generation capabilities, indicating significant market potential.
- Strong Institutional Confidence: The private placement financing completed by British American Tobacco (BAT), Organigram's largest shareholder, at a meaningful premium to market price signals strong institutional confidence and long-term strategic alignment with the transaction.
- Credible Valuation: ISS found the valuation of Sanity credible, supported by an independent fairness opinion from BMO Nesbitt Burns Inc., confirming the financial fairness of the transaction, which bolsters investor confidence in the deal.
- Positive Market Reaction: Following the announcement, OGI shares rose, with further increases noted by March 11, significantly outperforming both the S&P/TSX Composite Index and the Pharmaceuticals Index, suggesting elevated risks if the transaction is not approved.
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Organigram to Hold Special Meeting for Sanity Group Acquisition Approval
- Acquisition Overview: Organigram plans to acquire all issued shares of Sanity Group for €113.4 million, comprising €80 million in cash and €33.4 million in common or preferred shares, with a 71% premium over the previous day's closing price, reflecting strong market confidence.
- Financial Growth Potential: Sanity Group's projected net revenue is expected to grow from €9 million in 2023 to €60 million in 2025, with gross margins improving from 15% to 47%, which will significantly enhance Organigram's revenue and profitability, solidifying its market position.
- European Market Positioning: This acquisition positions Organigram as a leader in Germany, the world's second-largest legal cannabis market, with forecasts suggesting market growth beyond €4.5 billion by 2028, enabling the company to capitalize on rapidly expanding European opportunities.
- Investor Meeting Details: The shareholder meeting is scheduled for March 30, 2026, in Toronto, with a voting deadline of March 26; Organigram will also provide a telephone conference for shareholders unable to attend in person, ensuring transparency and engagement.
See More
Organigram Launches SHRED Shotz Beverage
- Product Launch: Organigram introduces SHRED Shotz, a 65ml single-serve cannabis beverage powered by FAST™ technology, designed to deliver effects within 15 minutes, aiming to attract new consumers and expand the beverage category.
- Brand Expansion: The SHRED brand surpassed $200 million in retail sales in 2025, and this new product launch further solidifies its market leadership while showcasing Organigram's ongoing commitment to innovation.
- Technological Advantage: The FAST™ nanoemulsion technology allows SHRED Shotz to outperform traditional products in absorption and efficacy, providing up to 50% faster onset times and double the cannabinoid delivery, enhancing consumer experience.
- Market Strategy: SHRED Shotz is expected to be available at Canadian retailers in Ontario and Atlantic Canada in March 2026, with plans for expansion into other provinces, thereby increasing Organigram's market presence across Canada.
See More
Organigram Launches New Products in Australia
- Market Expansion: Organigram's launch of Edison and BOXHOT medical cannabis vape and pastille products in Australia signifies an expansion of its international product portfolio, expected to meet rising market demand and enhance its global medical cannabis presence.
- Product Innovation: The new lineup includes 10 SKUs, with Edison vapes featuring single-strain live terpenes from Canada's top-selling cultivars, aimed at providing consistent dosing and convenient usage, reflecting the company's expertise in non-flower product development.
- Strategic Partnership: Through its distribution partnership with Leafio, Organigram's products are expected to reach over 4,000 pharmacies, enhancing accessibility and brand influence in the Australian market, thereby driving sales growth.
- Industry Event: Organigram will debut its new product lineup at the Medical Cannabis Symposium in Brisbane, using this platform to introduce its product portfolio to clinicians and industry participants, further solidifying its leadership position in the medical cannabis sector.
See More
Weekly Roundup: Cannabis and Psychedelic Sector Developments
- Organigram Strategic Investment: Organigram announced a C$65.2 million investment agreement with British American Tobacco to support its acquisition of Germany's Sanity Group, which is expected to position the company as a leader in the global legal cannabis market and expand its commercial footprint.
- Canopy Growth Acquisition Progress: Canopy Growth's acquisition plan for MTL Cannabis received 99.97% shareholder support, which is projected to enhance its leadership in the Canadian medical cannabis market and improve supply chain efficiency through the integration of MTL's patient network and cultivation facilities.
- Green Thumb Financing Expansion: Green Thumb Industries secured an additional $50 million credit facility from Valley National Bank, bringing its total to $189 million, which is expected to be used for strategic investments and working capital, further solidifying its market position.
- Enveric New Data Release: Enveric Biosciences reported new findings on EB-003, highlighting its non-hallucinogenic neuroplasticity strategy's effectiveness, potentially offering new options for depression and anxiety treatment, thus driving the company's innovation in mental health solutions.
See More
Organigram Secures CAD 65.2 Million Investment
- Investment Confirmation: Organigram Global Inc. confirmed a CAD 65.2 million private placement investment from a subsidiary of British American Tobacco, indicating strengthened financial health and increased market confidence.
- Financing Details: The financing includes the subscription of 14,027,074 shares at CAD 3.00 per share (totaling CAD 42.08 million) and the exercise of top-up rights for 9,897,356 shares at CAD 2.335854 per share (totaling CAD 23.12 million), culminating in gross proceeds of CAD 65.2 million.
- Market Reaction: Following the investment confirmation, Organigram's stock rose 8.70% in Thursday's premarket trading, reflecting investor optimism about the company's future, while the stock is currently trading 4.8% above its 20-day simple moving average.
- Earnings Outlook: Organigram is set to provide its next financial update on May 11, 2026, with EPS estimates dropping from 22 cents to a loss of 1 cent, while revenue estimates are expected to rise from CAD 45.70 million to CAD 54.67 million, indicating potential value opportunities.
See More
Organigram Receives ISS Support for Sanity Acquisition
- Strategic Rationale: ISS highlighted that the acquisition of Sanity positions the combined company to benefit from increased scale, geographic diversification, and enhanced market presence, thereby strengthening its financial health and cash flow generation capabilities, indicating significant market potential.
- Strong Institutional Confidence: The private placement financing completed by British American Tobacco (BAT), Organigram's largest shareholder, at a meaningful premium to market price signals strong institutional confidence and long-term strategic alignment with the transaction.
- Credible Valuation: ISS found the valuation of Sanity credible, supported by an independent fairness opinion from BMO Nesbitt Burns Inc., confirming the financial fairness of the transaction, which bolsters investor confidence in the deal.
- Positive Market Reaction: Following the announcement, OGI shares rose, with further increases noted by March 11, significantly outperforming both the S&P/TSX Composite Index and the Pharmaceuticals Index, suggesting elevated risks if the transaction is not approved.
See More
Organigram to Hold Special Meeting for Sanity Group Acquisition Approval
- Acquisition Overview: Organigram plans to acquire all issued shares of Sanity Group for €113.4 million, comprising €80 million in cash and €33.4 million in common or preferred shares, with a 71% premium over the previous day's closing price, reflecting strong market confidence.
- Financial Growth Potential: Sanity Group's projected net revenue is expected to grow from €9 million in 2023 to €60 million in 2025, with gross margins improving from 15% to 47%, which will significantly enhance Organigram's revenue and profitability, solidifying its market position.
- European Market Positioning: This acquisition positions Organigram as a leader in Germany, the world's second-largest legal cannabis market, with forecasts suggesting market growth beyond €4.5 billion by 2028, enabling the company to capitalize on rapidly expanding European opportunities.
- Investor Meeting Details: The shareholder meeting is scheduled for March 30, 2026, in Toronto, with a voting deadline of March 26; Organigram will also provide a telephone conference for shareholders unable to attend in person, ensuring transparency and engagement.
See More
Organigram Launches SHRED Shotz Beverage
- Product Launch: Organigram introduces SHRED Shotz, a 65ml single-serve cannabis beverage powered by FAST™ technology, designed to deliver effects within 15 minutes, aiming to attract new consumers and expand the beverage category.
- Brand Expansion: The SHRED brand surpassed $200 million in retail sales in 2025, and this new product launch further solidifies its market leadership while showcasing Organigram's ongoing commitment to innovation.
- Technological Advantage: The FAST™ nanoemulsion technology allows SHRED Shotz to outperform traditional products in absorption and efficacy, providing up to 50% faster onset times and double the cannabinoid delivery, enhancing consumer experience.
- Market Strategy: SHRED Shotz is expected to be available at Canadian retailers in Ontario and Atlantic Canada in March 2026, with plans for expansion into other provinces, thereby increasing Organigram's market presence across Canada.
See More
Organigram Launches New Products in Australia
- Market Expansion: Organigram's launch of Edison and BOXHOT medical cannabis vape and pastille products in Australia signifies an expansion of its international product portfolio, expected to meet rising market demand and enhance its global medical cannabis presence.
- Product Innovation: The new lineup includes 10 SKUs, with Edison vapes featuring single-strain live terpenes from Canada's top-selling cultivars, aimed at providing consistent dosing and convenient usage, reflecting the company's expertise in non-flower product development.
- Strategic Partnership: Through its distribution partnership with Leafio, Organigram's products are expected to reach over 4,000 pharmacies, enhancing accessibility and brand influence in the Australian market, thereby driving sales growth.
- Industry Event: Organigram will debut its new product lineup at the Medical Cannabis Symposium in Brisbane, using this platform to introduce its product portfolio to clinicians and industry participants, further solidifying its leadership position in the medical cannabis sector.
See More
Weekly Roundup: Cannabis and Psychedelic Sector Developments
- Organigram Strategic Investment: Organigram announced a C$65.2 million investment agreement with British American Tobacco to support its acquisition of Germany's Sanity Group, which is expected to position the company as a leader in the global legal cannabis market and expand its commercial footprint.
- Canopy Growth Acquisition Progress: Canopy Growth's acquisition plan for MTL Cannabis received 99.97% shareholder support, which is projected to enhance its leadership in the Canadian medical cannabis market and improve supply chain efficiency through the integration of MTL's patient network and cultivation facilities.
- Green Thumb Financing Expansion: Green Thumb Industries secured an additional $50 million credit facility from Valley National Bank, bringing its total to $189 million, which is expected to be used for strategic investments and working capital, further solidifying its market position.
- Enveric New Data Release: Enveric Biosciences reported new findings on EB-003, highlighting its non-hallucinogenic neuroplasticity strategy's effectiveness, potentially offering new options for depression and anxiety treatment, thus driving the company's innovation in mental health solutions.
See More
Organigram Secures CAD 65.2 Million Investment
- Investment Confirmation: Organigram Global Inc. confirmed a CAD 65.2 million private placement investment from a subsidiary of British American Tobacco, indicating strengthened financial health and increased market confidence.
- Financing Details: The financing includes the subscription of 14,027,074 shares at CAD 3.00 per share (totaling CAD 42.08 million) and the exercise of top-up rights for 9,897,356 shares at CAD 2.335854 per share (totaling CAD 23.12 million), culminating in gross proceeds of CAD 65.2 million.
- Market Reaction: Following the investment confirmation, Organigram's stock rose 8.70% in Thursday's premarket trading, reflecting investor optimism about the company's future, while the stock is currently trading 4.8% above its 20-day simple moving average.
- Earnings Outlook: Organigram is set to provide its next financial update on May 11, 2026, with EPS estimates dropping from 22 cents to a loss of 1 cent, while revenue estimates are expected to rise from CAD 45.70 million to CAD 54.67 million, indicating potential value opportunities.
See More
