Global equity markets have risen sharply in trading today, tracking gains in the oil markets. Oil prices have risen sharply amid expectations that the meeting between major producers scheduled to take place this weekend will result in a production freeze.
In North America, all major indexes were higher in mid-day trading. The S&P 500 in the U.S. was up almost 0.7%. The S&P/TSX Composite Index in Canada, meanwhile, was trading 1.17% higher. The recovery in oil prices should especially provide a boost to markets in Canada as the
Canadian economy has been negatively impacted by lower oil prices.
Among the major gainers in trading today is OrganiGram Holdings Inc. (TSX-Venture:OGI).
Based in Moncton, New Brunswick, OrganiGram is a licensed producer of medical marijuana in Canada. The company is focused on producing the highest quality, condition specific medical marijuana for patients in Canada.
At last check, OrganiGram shares were trading 7.23% higher at $0.890 on above average volume of 214,593.
OrganiGram shares are gaining in trading today after the company provided a preliminary synopsis of its second-quarter results. The company said that the highlights from the financial results for the quarter include a 38% increase in revenue, a 14% improvement in gross margin percentage and the achievement of positive year-to-date EBITDA and cash flow from operations.
OrganiGram also said that it is in the middle of a fully-funded expansion of its current location.
When completed, the expansion could bring annual production capacity in the order of 3,500 kilograms, the company said. The company also noted that with the advent of recreational regulations forthcoming, its existing acreage and infrastructure enables it to pursue an additional 5x increase in production capacity to accommodate the expected increase in consumer demand.
Dennis Arsenault, CEO at OrganiGram, said that the company continues to focus on all aspects of its business with an eye towards delivering exceptional products for its customers, increasing market awareness and driving incremental value for its shareholders.
Arsenault further said that OGI is geographically positioned to benefit from some of the lowest power and labour costs in the country, which the company is beginning to see reflected in its operating margins.
He added that the company continues to focus on strategic initiatives to position itself for incremental market share as it prepares for future recreational possibilities down the road.
