💸 High Impact

Organigram’s International Strategy Is Paying Off

Organigram Holdings Inc. has long been the quiet overachiever of Canada's cannabis industry—a bit like the straight-A student who also happens to be the star quarterback. Currently sitting pretty as the nation's second-largest cannabis seller, Organigram is widely regarded as the gold standard for indoor cannabis cultivation. Four out of six financial analysts are giving it the thumbs-up, and none are daring to whisper the dreaded "sell" word. While turning a profit in Canada's tough cannabis market might be akin to finding a unicorn, Organigram is playing a savvy long game by planting seeds abroad in more lucrative pastures.

A cornerstone of this international escapade is its blossoming romance with British American Tobacco (BAT). Since 2021, BAT has funneled a cool $350 million into Organigram, giving the cannabis company access to resources that would make its competitors green with envy. Unlike other corporate dalliances in the cannabis world—think Constellation Brands' lukewarm fling with Canopy Growth or Altria's hesitant waltz with Cronos Group—Organigram and BAT are practically finishing each other's sentences. They've got teams working side by side in Moncton, New Brunswick, cooking up the next big thing in cannabis products.

The latest cash infusion of $124.6 million from BAT, priced at $3.22 per share, wasn't just for show. It led to the creation of the "Jupiter" strategic investment fund—an $83 million war chest earmarked for global conquest. First stop on the world tour? Germany. Organigram recently dropped €14 million (about C$21 million) into Sanity Group GmbH, a Berlin-based medical cannabis operator with a network that would make Amazon jealous. With over 2,000 pharmacies and connections to some 5,000 physicians, Sanity Group is the golden ticket into Europe's burgeoning cannabis market.

But Organigram isn't just tossing euros around for fun. As CEO Beena Goldenberg quipped at the Benzinga Cannabis Capital Conference, "We know how to grow great quality cannabis, and it's time to expand beyond Canada." Translation: The company's tired of playing small ball in a market hampered by sky-high excise taxes that siphon off up to 50% of gross revenue before other expenses even get a look-in.

Germany offers a breath of fresh, profitable air. Sanity Group's co-founder and CEO, Finn Hansel, expects to possibly quintuple sales year-over-year, hitting 700 kilograms of product sold per month by October. With Germany's cannabis market growing like a well-watered weed, Organigram's investment is like getting in on Apple stock in the '80s.

Financially, Organigram is flexing some serious muscle. With $173 million in pro forma cash and virtually zero debt, it's got the kind of balance sheet that CFOs dream about. Recent quarterly reports show net revenue up 25% to $41.1 million and adjusted gross margins climbing from 19% to 36%. Net income swung back into the black at $2.8 million—a dramatic turnaround from last year's loss of $213.5 million, which was bogged down by impairment losses.

So what's next for Organigram? World domination seems to be on the agenda. With strategic partnerships, a robust balance sheet, and an eye on untapped international markets, the company is positioning itself as the James Bond of cannabis—suave, resourceful, and always one step ahead of the competition. While others are still figuring out how to navigate Canada's taxed-to-the-hilt landscape, Organigram is already jet-setting across the globe, martini (or should we say, infused beverage?) in hand.

📈 Dog Walkers

Ireland Is Shaking Up Its Drug Policy In A Major Way

Ireland is shaking up its drug policy playbook, and investors might want to take note. After hitting the pause button on marijuana legalization earlier this year, a special committee has just dropped a report with nearly 60 recommendations, including the limited legalization of cannabis and decriminalizing personal use of all illegal drugs. Think of it as Ireland's version of "decriminalize to capitalize." Gino Kenny, the committee chair, is advocating for cannabis clubs and a health-led approach, signaling potential growth in the wellness sector. While the supply and sale of drugs would remain illegal, the shift from punishment to harm reduction could open new avenues for investment in healthcare and support services. It's a paradigm shift that could have both social and economic dividends.

Flora Growth Expands Into The Beverage Category

Flora Growth Corp. (NASDAQ: FLGC) is stirring the pot—and by pot, I mean cannabis-infused beverages. With the completion of their specialized beverage facility, Flora is shaking up the U.S. market faster than you can say "THC-infused latte." Leveraging Peak's proven technology, which already powers close to 40% of Canada's cannabis beverages, Flora aims to replicate that success stateside. CEO Clifford Starke calls this move a "game-changer," and with over 100 formulations ready to quench consumers' thirst, it's hard to disagree. As more consumers seek alternatives to alcohol, and with the U.S. infused beverages market expected to reach half a billion dollars by 2030, Flora seems to be sipping from the cup of perfect timing.

Optimi Health Make PTSD Advancement

Optimi Health Corp. is making waves Down Under by treating PTSD patients with its GMP-certified MDMA capsules—talk about turning dreams into reality! After their initial 160 doses were snapped up in under eight weeks, they've secured an order for an additional 700 doses. CEO Dane Stevens isn't just spinning stories; he's delivering results while the FDA in the U.S. plays catch-up. Americans are even eyeing trips to Australia for these life-changing treatments. With a partnership with Mind Medicine Australia, Optimi is gathering real-world data that could reshape psychedelic-assisted therapies. Investors might want to keep an eye on this one—it's not just a trip, but a journey toward potential profits.

👾 Number Of The Day

$77.9M Dollar amount of edibles sold in NV over the last year.

🗞️ The News

Former Star Ricky Williams Explains NFL’s Stance on Cannabis

Global Growth Boosts Organigram’s Strategic Expansion Plans

Optimi Health Announces First PTSD Patients Treated with MDMA Capsules in Australia

DEA Judge Denies Agency’s Request To Block Witnesses In Hearing Challenging Proposed Psychedelics Ban

Legislative Committee In Ireland Calls For Marijuana Legalization And Decriminalization Of ‘All Illicit Drugs’

📺 YouTube

Former NFL RB Ricky Williams Explains NFL's Stance on Cannabis | Trade to Black

What we covered:

✅On our latest Trade To Black podcast, former NFL star Ricky Williams joins us to talk cannabis legalization and if we might see legislation changes in 2025 for the cannabis industry.

He also weighs in on if and when more NFL stars from the cannabis space will start advocating more in Washington all in an effort to create awareness to Congress.

Plus, Dan Ahrens from AdvisorShares (NYSEARCA: MSOS) joins us once again to talk about last weeks performance involving Bright Minds Bioscience (NASDAQ DRUG) and what investors can anticipate this week regarding the stock.