Organigram Holdings (OGI), a constituent in the MunAiMarkets Canadian Cannabis LP Stocks Portfolio, has not been able to turn a profit in Canada’s competitive cannabis (aka marijuana, pot or weed) market as yet, so it’s planting seeds in Europe’s lucrative burgeoning cannabis market.
(Before proceeding I want to give a shout out and hat tip to The Dales Report for their excellent analysis/comments on OGI) in their latest newsletter from which some information in my article was sourced.)
A cornerstone of OGI’s international venture is its close relationship with British American Tobacco (BTI), a constituent in the MunAiMarkets Conservative “Cannabis” Stocks Portfolio, which recently provided a cash infusion of $124.6 million – for a total investment of $350 million since 2021 – to create an $83 million war chest, called the “Juniper” strategic investment fund, earmarked for developing and expanding its European footprint.
OGI recently invested about C$21 million of the Juniper fund into Sanity Group GmbH, a Berlin-based medical cannabis operator, which hopes to quintuple sales year-over-year. With Germany’s cannabis market growing like a well-watered weed, (as The Dales Report puts it) Organigram’s investment is considered to be the golden ticket into the European market.
Organigram reports its next quarterly financial report on December 17th and will be summarize is an article in MunAIMarkets the day after that report so you can assess the success of their venture for yourself and compare their financial results with those of their peers.
The Dales Report concludes it article by stating that “world domination seems to be on the agenda. With strategic partnerships, a robust balance sheet, and an eye on untapped international markets, the company is positioning itself as the James Bond of cannabis—suave, resourceful, and always one step ahead of the competition. While others are still figuring out how to navigate Canada’s taxed-to-the-hilt landscape, Organigram is already jet-setting across the globe, martini (or should we say, infused beverage?) in hand.”
