OrganiGram Holdings Inc. Eyeing Cash-Flow Positive

OrganiGram Holdings

OrganiGram Holdings Inc (TSXV:OGI) announced that they expect to be cash-flow positive once Canadian adult recreational marijuana is officially legalized.

Organigram Holdings is a leading Canadian producer of medical marijuana that is based in New Brunswick. The company has already attained its marijuana supply license from Canadian regulators.

Cash Flow Positive

Organigram recently reported that is currently in its final stages of planting the remaining three cultivation rooms. There are 16 total three-tiered phase three cultivation rooms.

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Organigram’s phase three expansion is anticipated to increase the company’s targetted dried marijuana flower equivalent production from 22,000 kg/annum to 36,000 kg/annum. The harvest of phase three is expected to begin in late August, just in time for Canada’s national legalization.

The big advantage of phase three is that it doesn’t require the company to seek a new license from Health Canada. The new phase is all a part of the existing Moncton facility.

Another positive addition is that OrganiGram has been approved for a second harvest room, which allows the company to automate its harvesting process.

“We are pleased to successfully complete our latest expansion project on time and on budget to meet the needs of the existing domestic and international medical market as well as the launch of the recreational adult-use market in Canada on October 17, 2018,” OrganiGram CEO Greg Engel said.

OrganiGram has enough cash flow to fund all three stages of its phase three and phase four expansion. The company expects to be cash-flow positive from operations at the outset of the launch of adult recreational legalization in Canada.

Canada will allow national recreational marijuana on October 17th of this year. The Canadian marijuana industry is frantically working to keep up with the demand that is to come in the next coming months. Canadian marijuana stocks should benefit from this new legalization, as a substantial amount of cash flow is about to flood the industry.

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