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OrganiGram Holdings Inc T.OGI

Alternate Symbol(s):  OGI

Organigram Holdings Inc. operates through its subsidiaries. The Company’s major wholly owned subsidiaries include Organigram Inc., 10870277 Canada Inc., The Edibles and Infusions Corporation (EIC), and Laurentian Organic Inc. (Laurentian). Organigram Inc. is a licensed producer (LP) of cannabis, cannabis-derived products and cannabis infused edibles in Canada. It is focused on producing cannabis for patients and adult recreational consumers, as well as developing international business partnerships. It has also developed and owns a portfolio of legal adult-use recreational cannabis brands, including Edison, Holy Mountain, Big Bag O’ Buds, SHRED, SHRED’ems, Monjour, Laurentian, Tremblant Cannabis and Trailblazer. It operates facilities in Moncton, New Brunswick and Lac-Superieur, Quebec, with a dedicated edibles manufacturing facility in Winnipeg, Manitoba. 10870277 Canada Inc. is a special purpose holding company for the Company. EIC is a cannabis processor of confectionary goods.


TSX:OGI - Post by User

Bullboard Posts
Comment by Marc24on Oct 28, 2018 7:28pm
63 Views
Post# 28885044

RE:RE:RE:how much do ogi produce now and what is the projected

RE:RE:RE:how much do ogi produce now and what is the projectedGood analysis but I suggest two significant and material adjustments.

I mentioned in a previous post that they will NOT make $8 per gram of profit.  The stuff sells for $8 at retail.  OGI will earn gross profit at the wholesale value.  They will also earn higher margins on edibles and whatever they sell directly (medical).  I presume sales to international customers will also be high profit but I would be curious to know who pays for the freight which will be very high.  From an analysis perspective, I would leave profits on international sales the same as on domestic sales.

So, I would adjust your analysis for the following two things:
1.  Lower profit per gram (wholesale adjustment). Maybe $4 per gram is more reasonable to reflect the wholesale profit net of S,G&A and interest.
2.  I would then assume Ottawa will take 50% of the profit as corporate taxes.

The end result of these adjustments will be a much lower anticipated share price than yours but still dramatically higher than what it is today.

GLTA!
Bullboard Posts