Morning INK Report :: Insiders buying at OrganiGram Holdings

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This stock report was originally featured in the Morning INK for subscribers on Oct. 28OrganiGram has subsequently rallied about 100%. Highlights of the report were also published in the Globe and Mail Saturday

Today we look at OrganiGram Holdings (OGI) which, through its subsidiary OrganiGram Inc., is a licensed producer of medical marijuana. The stock set a 52-week low of $0.195 on October 7th, but its fortunes appeared to have pivoted since it began to become clear that the Liberals were moving ahead in the polls prior to the election. The stock is up 81.5% since the 7th, and insiders have been buying as the share price has recovered. Notably, OrganiGram Holdings is Venture exchange listed, while many of its peers are on an alternative exchange.

The Liberals have yet to clarify what form marijuana legalization will take, and, according to an October 20th article in The Globe and Mail, MP Hedy Fry has cautioned that storefront sales of cannabis will need to wait for the approval of an upcoming task force consisting of multiple levels of government as well as law enforcement and public health experts.

On October 21st, OrganiGram noted that the company had exceeded their fiscal Q4 sales guidance of $500,000 and offered an increased sales guidance for fiscal Q1 of $900,000. Their year-end financial statements (which would include fiscal Q4 results) are expected in early December.

From September 25th to October 22nd, OrganiGram Holdings (OGI) CEO Denis Arsenault acquired a total of 107,100 common shares on a direct ownership basis at an average price of $0.30. Mr. Arsenault is the largest insider equity holder at the company with 11.55% of shares outstanding.

On October 7th, President and CFO Roger Rogers bought 125,000 common shares on a direct ownership basis at a price of $0.23. Roger Rogers is the fifth largest insider equity holder at OrganiGram Holdings with 0.63% of shares outstanding.

On the same day, Director Kenneth Mitton acquired 239,800 common shares at an average price of $0.24. Mr. Mitton is the third largest insider equity holder at the company with 1.29% of shares outstanding.

Also on October 7th, Director Lawrence Rogers purchased 125,000 commmon shares on a direct ownership basis at a price of $0.23. Lawrence Rogers is the second largest insider equity holder at the company with 4.31% of shares outstanding.

OrganiGram Holdings has above median ownership (direct & indirect holdings) by Officers and Directors compared to other micro-cap stocks in the Healthcare sector according to SEDI filings as of October 26th, 2015.

OrganiGram Holdings currently holds a mostly sunny INK Edge outlook on the equally weighted V.I.P. criteria of valuations, insider commitment and price momentum which places it in the top 30% of all stocks ranked. INK outlook categories are designed to identify groups of stocks that have the potential to out- or under-perform the market. However, any individual stock could surprise on the up or downside. As such, outlook categories are not meant to be stock-specific recommendations.

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