Please ensure Javascript is enabled for purposes of website accessibility

Why Organigram Stock Surged Today

By Joe Tenebruso - Updated May 28, 2020 at 2:49PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The cannabis company is making some new goodies available to medical marijuana users.

What happened

Shares of Organigram Holdings (OGI 1.53%) were flying on Thursday after the company said it was rolling out its "cannabis 2.0" products to its medical marijuana customers. 

As of 3:27 p.m. EDT, Organigram's stock was up more than 12%.

So what

Cannabis 2.0 is a term used to describe second-generation marijuana products such as edibles and beverages, as opposed to cannabis 1.0 products like dried flower.

Organigram said the rollout will include its Edison Cannabis Company ready-to-use vape pens and vaporizer pods, as well as its Edison Bytes chocolates.

"Organigram has a deep and long-standing commitment to our medical cannabis consumers," CEO Greg Engel said in a press release. "As more and more patients turn their attention to new forms of cannabis, we are proud to offer them access to an innovative and growing product portfolio."

Ball-shaped chocolate next to cannabis leaves.

Organigram Holdings stock rose sharply on Thursday after it said it would make its cannabis-infused chocolates available to more people. Image source: Getty Images.

Now what 

Cannabis-infused products are regarded as a potential panacea for the ailing marijuana industry. They tend to be higher-margin items, and therefore are expected to help cannabis companies like Organigram improve their profitability.

Organigram is particularly well positioned to profit from the high demand for marijuana edibles, as its investments in automation technology should allow it to efficiently produce large amounts of cannabis-infused chocolate.

"We are continuously innovating, responding to the feedback from customers and building brands that we believe reflect their evolving needs and preferences," Engel said.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

OrganiGram Holdings Stock Quote
OrganiGram Holdings
OGI
$0.95 (1.53%) $0.01

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
316%
 
S&P 500 Returns
112%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/06/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.