Organigram swings to Q3 loss on rising costs, weaker-than-expected sales 

Organigram swung to a third-quarter loss on rising costs and lower recreational pot reorders from some Canadian provinces, the company reported on Monday. The Moncton, N.B.-based licensed producer reported a $10.2-million loss for the three-month period ended May 31, compared with a profit of $2.8 million a year earlier. Meanwhile, the company’s revenue was $24.8  million, down from $26.9 million in its prior quarter but up nearly 700 per cent from the same quarter a year earlier. Analysts said in light of the company’s recent quarter, Organigram could face difficulties delivering revenue growth and margin growth over the next quarter or two. In an interview on BNN Bloomberg, Organigram CEO Greg Engel said the company is looking to maintain its financial prudency and plans to hire an additional 100 people on top of its existing 750 ahead of the next-generation of cannabis products.

Analyst ends coverage of CannTrust amid regulatory uncertainty 

One analyst is throwing in the towel on CannTrust amid the regulatory uncertainty surrounding the Vaughan, Ont.-based cannabis producer. Mackie Research’s Greg McLeish said he is terminating coverage of CannTrust on Monday, stating the firm has “lost faith in management” amid uncertainty about the company’s future after recent regulatory infractions. The decision to abandon coverage came four months after McLeish downgraded the stock to “market perform.” McLeish also stated that Health Canada must “come down hard” on CannTrust if it wants to maintain any credibility.  At least nine analysts have lowered their price target or downgraded their rating on CannTrust since the initial disclosure last Monday. The company’s shares lost almost half their value last week.

Health Canada revokes Agrima Botanicals licence due to “unauthorized activities”  

Health Canada has formally revoked the cannabis licence of Agrima Botanicals, months after the company disclosed that the regulator found "unauthorized activities" with pot at the firm. Agrima's parent company Ascent Industries said in November that the activities in question occurred at the company during a period of time when it was privately held. The company also said in November it was appealing its suspension. The matter is arguably a formality after Health Canada suspended Agrima's producer and dealer's licence under the former Access to Cannabis for Medical Purposes Regulations for non-compliance with the regulations. Agrima was notified in November of Health Canada’s plans to revoke the licence.

More Canadian cannabis producers get green light to grow their pot outdoors    

A bevy of Canadian cannabis companies formally received their new licences from Health Canada late last week to begin growing cannabis outdoors. Aurora Cannabis announced Monday it received licences for outdoor cultivation at sites in Quebec and B.C. from the regulator, but aims to use the facilities for cultivation research to develop new technology, improve genetics and bolster intellectual property. Also receiving a Health Canada green light was Flowr Corp which said it got its second site cultivation licence from Health Canada for its Flowr Forest project, which will help it produce approximately 10,000 kilograms of outdoor cannabis annually. Health Canada also approved Aleafia Health’s amendment to increase its operational outdoor cultivation area from 292,000 square feet to over 1.1 million sq ft. Finally, Emerald Health Therapeutics received its cultivation licence from Health Canada for the 12-acre outdoor area to grow approximately 10,000 kilograms of cannabis annually with multiple crops during a full growing season.

DAILY BUZZ
19.9%
-- The stake National Access Cannabis now owns in B.C. pot retailer Sicamous Trading Company. STC currently has one retail cannabis store licence application in process with B.C. regulators and plans to add more locations over the next 12 months.

Cannabis Canada is BNN Bloomberg’s in-depth series exploring the stunning formation of the entirely new – and controversial – Canadian recreational marijuana industry. Read more from the special series here and subscribe to our Cannabis Canada newsletter to have the latest marijuana news delivered directly to your inbox every day.