Organigram Holdings Inc. (TSX-V:OGI) (OGRMF) applied to list its shares on the NASDAQ Global Select Market, according to a statement released Friday by the company. As is customary with such a move, the company will file a Form 40-F Registration Statement with the United States Securities and Exchange Commission.
Organigram, which is the parent company of Licensed Producer Organigram Inc. is subject to the approval of the NASDAQ and the satisfaction of all applicable listing and regulatory requirements before the final listing of its shares can move forward. The company does intend to continue to trade on the TSX Venture in Canada under its current symbol, OGI.
"As a management team we are seeing increased interest from investors in the U.S. and internationally and believe that having a listing on the NASDAQ will facilitate trading," said Paolo De Luca, Chief Financial Officer of Organigram in a statement. "Also, based on precedents in the cannabis space, we expect trading volumes to increase which should result in increased liquidity for all investors.”
According to a statement, Organigram refiled the last two years’ annual financial statements to note the fact that the consolidated financial statements were filed per International Financial Reporting Standards "as issued by the International Accounting Standards Board.” It’s the only significant change being made to recent company disclosures.
Well-positioned in the Canadian cannabis market
Organigram is well-positioned in the Canadian market, with supply agreements in every province. They have seen a boost from sales of adult-use cannabis, with net revenues of $26.9 million in Q2, along with gross margins of $16 million.
In recent months the company has tripled its production capacity to 113,000kg per year, placing it among the top up-and-coming Licensed Producers in the country. Moving forward, Insider Financial reports that the company is looking at vaporizable pen technologies, as well as the edibles market.
“Our team has already progressed several key initiatives in preparation for the derivative and edibles launch in the fall of 2019,” said CEO Greg Engel in a recent statement. “We are excited about the significant growth ahead expected from these new products, our expanding capacity, our strategic partnerships, and our relentless focus on continuous improvement to consistently deliver a high-quality product to our customers.”
The stock closed at CA$8.75 ($6.50) on Friday, down 0.79 percent from the previous day’s close.