Organigram cannabis plants and growing process certified organic
Organigram Holdings (TSXV: OGI) announces its medicinal cannabis plants and growing process has been certified organic with Ecocert Canada. The process of re-certification coincided with Organigram’s significant expansion of its facility to meet the growing and anticipated demand for both mineral and organic production.
The stock market can be funny sometimes. Back in late 2016 and early 2017 when OGI was one of a few companies embroiled in a myclobutanil pesticide furor, I urged readers to stick with their holdings of OGI because I was convinced that management had the problem under control and the matter would soon blow over. You might say my advice on the stock was right but for the wrong reasons. Investors who stayed with their holdings in OGI have been richly rewarded. At the same time, there were many comments on my Seeking Alpha page who urged shareholders to sell because it was going to take a long time for OGI to re-establish their organic certification. They turned out to be wrong for the wrong reasons.
In any event, that is water under the bridge. But there is a difference. Out of the debacle, OGI started to grow non-organic product which is just as well because the price being accorded organic product probably isn’t worth the cost of doing it. As a result, OGI now grows mostly regular product and a small amount of organic product in close proximity to each other. As often happens in life, management dealt with adversity and came up with a better business model for current conditions. As a result, OGI also offers a high-quality medicinal organic option.