Organigram Holdings is most likely heading for NASDAQ
Behind Canopy Growth Corp, Organigram Holdings Inc. is the second-place seller of recreational cannabis in Canada. It has sold twice as much as Aphria, but its performance and successes are not registering among investors. This is most likely why the cannabis company has decided to move its stock to NASDAQ and filed to be listed on the US-based stock exchange last Friday.
If everything goes according to plan, Organigram will go live on NASDAQ in about a month. The crux of its investors are retail-based – not institutional – which is going to prove to be valuable for the stock price when trading opens. Currently, only 11% of all available shares are owned by institutional clients, of which most are owned by two exchange-traded funds.
Several large cannabis companies are already listed on US-based exchanges. Cronos Group is traded on NASDAQ, while both Canopy and Aurora are traded on the NYSE and all three have been doing fairly well.
According to Greg Engel, Organigram’s CEO, more institutions are likely to begin taking positions in cannabis companies. He added that the company wants to attract long funds and long-term investors and stated, “We’ve seen that it has driven value for the companies that list on senior U.S. exchanges. So there’s a differentiation if you’re accessing a new market at a different level.”
In the most recent quarter, Organigram sold just under 5,000kg of dried cannabis in Canada. This represented growth of more than 1,000% year-on-year, giving the company, minus the federal excise tax, $19.98 million in earnings.