Organigram Holdings reports $89.6-million quarterly loss

The company’s senior vice president of marketing, Ray Gracewood, has left “to pursue other interests”

Organigram Holdings quarterly loss

Organigram Holdings employs 433 workers at its indoor facility in Moncton. Photo by Organigram Holdings.

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A Moncton-based cannabis company suffered a monumental operating shortfall in the midst of a global pandemic. Organigram Holdings reported a comprehensive quarterly loss of $89.6 million.

For the three months ending on May 31, Organigram Holdings posted net revenue just over $22.2 million.

As a result of these numbers, investors drove the stock down by 9.8 percent today. Shares closed at $1.84 on the Toronto Stock Exchange.

That’s still nearly 20 percent above the 52-week low of $1.54.

Last July, the share price reached $9.50 in Toronto. The company’s stock is also listed on NASDAQ.

In the wake of these results, Organigram Holdings announced a significant executive change.

The company’s senior vice president of marketing, Ray Gracewood, “has left Organigram to pursue other interests”.

“Ray is a pioneer in cannabis marketing,” CEO Greg Engel said.

“He has been instrumental in launching Organigram’s medical business and building out its adult-use recreational brand portfolio.”

The company appointed the senior director of brand, Julie Chamberlain, as the vice president of marketing.

In the past, Chamberlain worked as a brand leader at L’Oréal and Irving Oil.

Organigram Holdings cut payroll in July

Due to declining demand for its cannabis during the pandemic, Organigram Holdings slashed its workforce by 25 percent.

In a July 3 statement, the company revealed that following this cutback, it had 609 employees. That included 433 at its indoor growing facility in Moncton.

Organigram Holdings also disclosed that its plants did not generate as much revenue in the last quarter.

“During the three months ended May 31, 2020, management ceased the harvesting of trim from the cannabis plants,” the company said in reporting its quarterly loss.

Therefore, Organigram Holdings only included the flower component in the the average yield per plant at May 31, 2020.

Charlie Smith

I'm the editor of the Georgia Straight newspaper in Vancouver, as well as a CannCentral contributor.

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