OrganiGram (OGRMF) has been in the news lately for several reasons. The company is now covered by investment firm Jefferies, which gave the stock a “buy” recommendation along with Aurora Cannabis (ACB).
Deal with Quebec
Just this week, the company announced that it recently bagged a supply deal with Quebec. The company is one of a select few companies supplying to all ten provinces of Canada to the tune of 36,000 kilograms annually.
The stock has seen a 5% increase in February, just a little shy of the Horizons Marijuana Life Sciences ETF (HMMJ), which gained about 6%.
A deal with Quebec puts OrganiGram alongside Canopy Growth (WEED), Aphria (APHA), Tilray (TLRY), HEXO (HEXO), and Aurora Cannabis (ACB). Almost a year ago, Quebec signed an agreement with these companies to supply about 62,000 kilograms annually. Interestingly, with the addition of OrganiGram, underlying cannabis demand appears much higher than expected.
In the early morning trading session, the overall cannabis sector was in negative territory with OrganiGram down 3%.
Check out Key for Investors: Watching Cannabis Sector Valuations and Why Jim Cramer Likes Canopy Growth.