Organigram Holdings (NASDAQ: OGI) reported Q4 revenue for the quarter came in at $25.2 million, versus $12.42 million reported last year.

• Net revenue more than doubled to $25.2 million from $12.4 million in Q1 2019
• Gross margin before fair value changes to biological assets and inventory of $9.3 million or 37% of net revenue compared to $8.8 million or 71% of net revenue in Q1 2019
• Net loss of $0.9 million compared to net income from continuing operations of $29.5 million in Q1 2019 largely due to non-cash fair value changes to biological assets and inventories in the prior year quarter
• Adjusted EBITDA1 of $4.9 million compared to $6.8 million in Q1 2019
• As planned, the Company started shipping Trailblazer Torch vape cartridges on December 17, 2019 and expects to start shipping Edison + Feather ready-to-go distillate pens before the end of January 2020 followed by Edison + PAX ERA distillate cartridges in Q2 calendar 2020
• Received licensing for chocolate production and packaging areas in December 2019 and remain on track for initial sales of cannabis-infused chocolates in Q1 calendar 2020
• The Company believes it has enough capital to fund its operations and capital expenditure plans. The Company had $34.1 million of cash and short-term investments at quarter-end. Additionally, as of the date of this press release, Organigram has $30.0 million in undrawn capacity on its term loan and $32.1 million available to raise under its total $55 million at-the-market equity program (the “ATM Program”) after it raised $22.9 million subsequent to quarter-end

“Despite ongoing industry challenges, we are pleased with solid Q1 2020 results and our return to positive adjusted EBITDA during the quarter, said Greg Engel, CEO. Our team was also successful in shipping the first of our Rec 2.0 products as planned and on schedule in December of 2019. We also look forward to the launch of the remainder of our vape pen portfolio followed soon after by our premium cannabis-infused chocolate products. In addition to an exciting line-up of 2.0 products, we are rolling out a couple of new core strains, such as our high THC Edison Limelight, across the country following their success as limited-time-offers in smaller markets.”

Outlook

• The Company believes that the Canadian market is positioned for growth with additional retail store openings planned in the largest markets of Ontario and Quebec collectively representing over 60% of the Canadian population.
• Legalization of edible and derivative products is also expected to significantly expand the legal market from its current state. Certain provinces have announced delays or other restrictions on the launch of vaporizable products in their markets including Newfoundland & Labrador, Quebec and Alberta. The Company is adjusting its distribution schedules and revenue expectations accordingly.
• Organigram has and continues to build excised finished product across a variety of SKUs and is ready to onboard the addition of Ontario retailers. The first few of Ontario’s new stores opened in December 2019. That same month, Ontario announced it is taking steps to move to an open market for retail cannabis stores beginning in January 2020. Store authorizations from this open application process are expected to be issued beginning in April, at an initial rate of approximately 20 per month. This is expected to set the stage for further growth for Organigram and the industry. The Société québécoise du cannabis also previously announced plans to double its number of stores and Alberta’s robust network of about 375 stores has continued to grow to meet consumer demand.

For earnings history and earnings-related data on Organigram Holdings (OGI) click here.