OrganiGram Holdings Inc T.OGI

I like the slow rise

[Investability00]

over time. It's better than it used to be. Maybe around $3.00 plus by the end of the year!

[marf49]

This post has been removed in accordance with Community Policy

[Monquarter]

Where the money went is clear to me.  On Dec 1, 2020 (first day of their second quarter), they paid down their long-term debt by $55 million. I suspect the bank wanted to de-risk their position with OGI. Effectively, OGI swapped equity for debt.  They took money from retail investors to give to the Bank of Montreal. That's how I interpret the money trail.

[MisterGRP]

That was my understanding as well. I think that circumstances dictated that move and it was the right one. They took that loan instead of dilltion, to me a good move at that time. Unfortunately circumstances like too many producers drove down the price of products and Covid hit which affected the amount of cash coming  in and their  ability to pay off the loan. Thus the decision to find

[marf49]

This post has been removed in accordance with Community Policy

[Investability00]

While it is always sensible to investigate a company's debt, in this case OrganiGram Holdings has CA$38.3m in net cash and a decent-looking balance sheet. And we liked the look of last year's 795% year-on-year EBIT growth. So we don't have any problem with OrganiGram Holdings's use of debt

[marf49]

This post has been removed in accordance with Community Policy

[marf49]

This post has been removed in accordance with Community Policy

[HopefulJuan]

They plunked down $55M on the debt last Q. MM's holding this back. Some that are working with OGI like Cannacord. Friends like that are not wanted, only needed for now.