The Market at a Glance
S&P/TSX Composite Index rose to 14,754.06, or up 0.92{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} today. The big shakers were TSX gold, energy and material sectors.
S&P/TSX SmallCap Index returns today, breaking a seven day streak of decline.
Gold prices rose today, as crude oil saw a rally. “The move up in crude prices is giving gold the boost,” said Phil Streible, a senior commodity broker at R.J. O’Brien & Associates. A contrarian analysis of gold-market sentiment suggests however this may be a weak foundation.
- Published in Blog
Press Release: OrganiGram (OGI.V) builds three grow rooms in Moncton
2014-12-01 08:17 ET – News Release –
Mr. Denis Arsenault reports
ORGANIGRAM ANNOUNCES THREE ADDITIONAL GROW ROOMS PASS INSPECTION – INCREASE PRODUCTION
OrganiGram Holdings Inc. has completed, as part of the expansion at its medical marijuana production facility in Moncton, the construction of three additional 72-flowering-light grow rooms. In accordance with the Marihuana for Medical Purposes Regulations, all necessary Health Canada inspections and approvals have been obtained.
The completion of the three new grow rooms will add 1,700 plants to the facility, enabling the company to increase production levels to one million grams (1,000 kilograms) and represents approximately $8-million in revenue per year.
“We are extremely happy to be making this announcement today. The OrganiGram team has been working tirelessly to bring these new grow rooms on-line and fulfill our commitment to MMPR patients,” said Denis Arsenault, chairman and chief executive officer.
Expansion update
Additionally, the company began construction of a further eight grow rooms on Oct. 1, 2014. The construction of these 90-flowering-light rooms is expected to be complete and production to begin in February, 2015. Once completed, this phase of expansion will add 11 grow rooms totalling 936 flowering lights to the current facilities capacity. This expansion will increase the facility’s production to three million grams (3,000 kilograms) and represents approximately $24-million in revenue per year.
We seek Safe Harbor.
© 2014 Canjex Publishing Ltd. All rights reserved.
- Published in Blog
Organigram ( OGI:V) – Why You Should be Looking at Them Now.
Chris Parry has become one of the forefront speakers on the Medical Marijuana space in Canada, covering many of the rise and falls of this space. Recently through his MMPRInvestments, They released a free report covering Organigram (OGI:V).
Chris points out probably the most important aspect when considering which company to get involved with – Organigram’s deal with the Trauma Healing Centers. In the Canadian MM industry, they are the only company currently with a deal that will cater to individuals who have government backed health insurance. This coupled with its organic certification, easy scale capacity and bilingual nature ( Quebec monopoly in the making..?), makes OGI one of the top MM producers. And don’t forget, MM has show great promise for victims of PTSD.
Let that sink in for a second, then go read the full report here
- Published in Blog
The MMPR Investments Report: Organigram (OGI:V)
The medical marijuana space in Canada has been crazy for the last year.
From the sudden emergence of a corporate medicinal cannabis supply system to court cases allowing formerly registered users to continue growing their own product, to the crazy profligation of unregulated dispensaries in Vancouver while other cities shut them down as soon as they appear, the mining-to-marijuana rush, the crazy share price spikes and crashes, the suited brokers shoving through barbed wire fences to do deals with motorcycle club employees, the boardrooms with baggies of samples being passed around… nobody could have foreseen the madness.
But out of madness, eventually, comes sanity. And the Canadian weedspace right now is verging on the sane.
Gone are many of the early share price rockets. Companies like Green and Hill, and Growlife, and Enertopia, and Creative Edge Nutrition, which had market caps as high as when they launched, now scrape bottom. The ticker symbol plays like BUD and THC are nowhere to be seen. And investors that, formerly, played all day, bouncing their cash from play to play depending on what was being promoted, are now butthurt, poorer, and looking for where to go next.
That’s the bottom end.
At the top, some serious wheels are turning. I’ve looked deep into the soul of many of these companies and I like what I see. Canadian medical marijuana is a mess of bureaucratic regulations, to be sure, but that torturous process has effectively allowed the market to be filtered through a sieve that has left only the high quality, the well-funded, the professionally run and the well supported companies standing.
Companies like Bedrocan, the Canadian subsidiary of a Dutch parent that has the monopoly on European medical marijuana and has earned $1m in revenue just reselling imported product from its parent. And Tweed, which two licensed facilities and a big war chest, the first mover in the market that stands tall on its effective marketing campaign and US investor base penetration. And Mettrum, a new player that keeps it cards close to its chest while it quietly connects registered patients to its product. And Supreme, which is marching towards its license with a plan to grow medical marijuana in a massive Ontario based facility, and sell it on the cheap to feed the low end of the market.
These are all fine companies. There are others, earlier in their licensing process, that may add to the roster. But there’s one that, right now, to me, has demonstrated it stands tall.
That company is Organigram.
You’ll find it in the Canadian markets under the ticker V.OGI. In the US, it’s OGRMF.
Why do I like this company? How much do I like this company?
Let’s get into that.
Organigram is not selling more weed than anyone else. It’s not got more name recognition than anyone else. It’s not sitting on a billion square feet of growing space. But it has something REALLY important in Canada, and North America proper.
It has a deal.
That deal is with Trauma Healing Centres (or THC), a group that is opening a series of clinics across Canada aimed at treating people with post-traumatic stress disorder. That means, largely, military veterans and first responders.
The deal promises to bring Organigram as much as $22m over the first two years, and to expand outward from that. But while that’s nice, it’s not the most important thing.
The deal also promises to give Organigram a bankable off-take arrangement upon which it can plan ahead. Instead of fighting for every patient, the THC group will bring the patients to them. But that’s not the most important thing.
The deal will embrace Organigram’s certified organic product (something no other company has), and will take advantage of the company’s truly bilingual structure (something, again, no other company has, and which gifts the company Quebec as a virtual monopoly).But, again, not the most important thing.
The important thing is veterans in Canada have government-backed health insurance, and medical marijuana is an accepted treatment for PTSD.
This means Organigram has a deal that, as a first in North America, will be insurance-backed, to serve a large segment of the population exclusively.
Anxiety disorders, or which PTSD is one of the largest segments, cost the US health system $42.3 billion annually, according to the Sidran Institute. Around half of that is spent on drugs, and those drugs are significantly more expensive – and less effective – and have more side effects – than medicinal cannabis.
Currently, Health Canada puts the potential market for medical marijuana at $1.3b per year in 2022. So if Organigram can be the go-to place for Canadian veterans and first responders to turn to for their PTSD relief, the market radically dwarfs the expected registered medical marijuana user for all other ailments.
This won’t happen tomorrow. It won’t happen next month. But when it happens, when the healing centres open and the veterans groups, which are behind THC, start moving their brothers into that system, Organigram won’t have time to scratch itself for all the business it’ll be handling.
And that’s why the company, right now, is working feverishly to expand. All the money it has raised in previous months, all of it is going to expansion of its present facility – something it can do because it just purchased the building next door and worked with the municipality to merge the two properties into one address. No need for a new MMPR!
I own Organigram stock. I’m not selling. I’m going to have to make that disclosure every time I write about this company for a long time to come because I have no plans to cash in my stake. I’m waiting for dividends, and I’m very happy in my belief dividends will one day flow hard.
There are several great investment options in medical marijuana in Canada. You should seriously consider them and invest where you think your money will be safest and most productive.
For me, that’s Organigram. V.OGI. Get in.
Written by: Chris Parry
NOTE: The author of this report has been paid for its production and dissemination and owns Organigram stock. Please do your own due diligence before making any investment and speak to a licensed professional for investment advice.
- Published in Blog
92 Resources(NTY:V) Advancing in Uranium
The Uranium Industry has recently seen more exposure in the last weeks. The Basin is home to some the highest grade uranium in the world, as well as McArthur River, the largest producing mine. Coming in second in global supply, Canada was surpassed by Kazakhstan in 2009. With the end of the Megaton to Megawatt program, and increased global pressure to use clean energy, many countries have turned to uranium. This coupled with energy security concerns and greenhouse constraints on coal, has continue to keep uranium in the limelight.
Brad Wall, Premier of Saskatchewan, was on official trade business November 17-23 in India. In this time agriculture, clean coal technologies and uranium were discussed. On uranium, Mr. Wall said “We are looking for uranium exports to India and have held preliminary discussions with officials of the Atomic Energy Commission and hope to conclude an early agreement.”
One such early play, 92 Resources (NTY:V), a junior exploration company with claims in the basin, released some management discussion on their Mitchell Lake property today. The 2354 hectare claim is on the eastern edge of the Athabasca Basin, adjoining to the south, Cameco’s Mitchell Lake Zone and 2.2km to the south, UEX’s West Bear Deposit. Significant exploration projects in the immediate area include UEX’s Hidden Bay Project, Fission’s Minor Bay Project, Pitchstone’s Martin, as well as Projects controlled by Denison Mines and JNR Resources. NTY intends to complete a ground survey in the near term to further define diamond drill targets. This program is subject to financing.
Stimulating the Uranium Industry: New Catalysts?
Uranium plunged by US$6 a pound (or 13.6{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}) over the past week to US$38. Last week it was breaking highs with 44$, up over 25{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} from last year, but were unable to keep the new levels.. With 2 Fukushima reactors set to restart in 2015, the uranium sector has seen renewed interest in recent months. The spot uranium market is relatively small, so massive price jumps are normal. Today is to be noted though – this second largest week to week drop since ’96.
“Recent positive uranium spot price movements have failed to reverse the negative trend in the equities and, in the near term, equities will respond to macro news, such as in Japan where 19 of 26 assembly members recently voted in favor of nuclear reactor restarts.” Colin Healy, The Gold Report
Analysts predict that this may be the beginning of a long upward streak for the price of the commodity, however this may be sentiment driven. Most Uranium equities though have been affected with the TSX down more then 20{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} since August.
“We have heard from several sources that the recent price rally has been driven more by transient supply tightness and that over the medium term, the market remains well supplied,” Greg Barnes, Financial Post
With China committing to capping its carbon emissions by 2030, it plans for 20{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} to be covered by renewable sources. The numbers that don’t seem real? 1,000 nuclear reactors, 500,000 wind turbines or 50,000 solar farms are required to cover this. Currently China has 23 reactors with 26 more being built – this shows that China still has much to do to met this commitment.
- Published in Blog
Canadian Securities Exchange to Bring Nasdaq’s Corporate Solutions to Issuers
Canadian Securities Exchange to Bring Nasdaq’s Corporate Solutions to Issuers
NEW YORK and TORONTO, Nov. 20, 2014 (GLOBE NEWSWIRE) — Nasdaq (Nasdaq:NDAQ) today announced a new partnership with the Canadian Securities Exchange (CSE) in Toronto, to further its commitment to providing value-add Corporate Solutions offerings for listed companies in Canada. The strategic partnership will offer CSE’s issuers the full suite of Nasdaq’s market-leading Corporate Solutions products including investor services and targeting, public relations and governance solutions.
“Our solutions are built to empower companies to better inform and manage relationships with their investors, their boards and the general public,” said Paul McKeown, Senior Vice President, Corporate Solutions, Nasdaq. “This new partnership with CSE will bring our solutions and services to many new public companies listed with CSE, and expand our already significant presence in the Canadian market.”
CSE issuers will now have potential access to the Corporate Solutions suite of products including the Investor Relations desktop and mobile platforms, Advisory Services, Directors Desk and the GlobeNewswire press release distribution service. In addition to this new agreement, CSE has been a market technology customer of Nasdaq for over 10 years, operating on the X-stream trading platform.
“We are proud to be offering our listed companies some of the finest corporate services and solutions on the market through this new relationship with Nasdaq,” said Robert Cook, Senior Vice President, Market Development, Canadian Securities Exchange. “The CSE cannot emphasize enough the importance of communicating seamlessly and frequently with your key stakeholders while practicing good governance. We feel these offerings will strengthen our issuers and help them achieve their business goals.”
Nasdaq’s technology solutions are used by over 10,000 customers in 60 countries, consisting of public and private entities, exchanges, regulators and broker-dealers, and power over 100 marketplaces worldwide.
About The Canadian Securities Exchange (CSE):
The Canadian Securities Exchange is the only exchange providing trading and market information services for all securities listed in Canada. Recognized as an exchange by the Ontario Securities Commission in 2004, the CSE is designed to facilitate the capital formation process for public companies through a streamlined approach to company regulation that emphasizes disclosure and the provision of efficient secondary market trading services for investors. The exchange is home to more than 250 issues covering a broad range of industry sectors.
For more information please visit www.thecse.com and our blog at http://blog.thecse.com/.
About Nasdaq:
Nasdaq (Nasdaq:NDAQ) is a leading provider of trading, exchange technology, information and public company services across six continents. Through its diverse portfolio of solutions, Nasdaq enables customers to plan, optimize and execute their business vision with confidence, using proven technologies that provide transparency and insight for navigating today’s global capital markets. As the creator of the world’s first electronic stock market, its technology powers more than 70 marketplaces in 50 countries, and 1 in 10 of the world’s securities transactions. Nasdaq is home to more than 3,500 listed companies with a market value of over $8.8 trillion and more than 10,000 corporate clients. To learn more, visit www.nasdaq.com/ambition or http://business.nasdaq.com/.
- Published in Blog