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If other MJ companies can secure loans from banks
https://www.google.com/amp/s/finance.yahoo.com/amphtml/news/high-tide-secures-10-million-121000656.html
Why didn’t OGI do this rather than an offering that will largely dilute the stock. Can they not get a loan from a bank, are they overextended on current loans? Whatever the reason they chose to dilute shareholders value.
OGI and many others getting hammered, thought OGI was a better company obviously not roll the dice pick a company they will all go up and down together.
People praising OGI for what? The MJ they produce is low level flower it’s a waste of space and money. Much is worthless as flower and then when they try to convert it to oil it produces a low THC oil that will also not sell well. Many growers have the same facility extract their oil for them but the majority of others come in at 20% or so higher THC counts. Low THC products are not in high demand and will have trouble selling.
https://www.newcannabisventures.com/how-to-measure-cannabis-extraction-efficiency/
This is from an extraction article explains what I was saying
“Products made using material that has been extracted are measured and often sold based upon the amount of THC content. The “yield” does not measure THC content in any way. Thus, the potency, the amount of THC, is the most critical number to be concerned about.
The amount of THC in the extract is directly related to the amount of THC contained within the feedstock and how effective the extraction process is in removing and collecting it. Feedstock can have THC potencies that range from 0% to as high as 30%. Assuming the extraction process can obtain all of the THC in the feedstock, feedstock with higher THC content will result in higher THC extracted oils compared to feedstock with lower amounts of THC content.“
Whole article here https://www.newcannabisventures.com/how-to-measure-cannabis-extraction-efficiency/
Sector will be Canada opening about 75% more dispensaries so the demand can catch up to the over supply. Terrible rollout by the government they knew the amount of cultivators they licensed and had to know the amount of dispensaries approved wasn’t even close to be able to distribute the amount being grown.
As for OGI they need to work on their genetics they will never have a top selling product with the low THC flower they produce now. You can’t overtake the black market selling flower that is lower quality and more expensive. Their strains are simply not good. It’s an easy fix but will they do it? They can say they won awards for their product but can it sell and no where have I found they have a top selling brand or strain, that is very concerning. The companies that survive will be the ones with the best selling product. And they were not first to market with their low THC vapes many other companies were ready on rollout day too just look at menu’s you see many vape choices unfortunately OGI’s will be the lowest THC as usual.
If shareholders want this to be a top selling marijuana company we need to notify management that they need at least one high THC offering and to dump the trailblazer flower altogether, 10% THC is a joke and very few will purchase it. The ones that do purchase it will know nothing about Flower and may be new to smoking or it’s someone who smokes very rarely which neither help regular sales.
You never find Organigram as a top seller in any searches you do. I have done many and out of the public stocks you most commonly see San Rafael, 7 Acres and Broken Coast Cannabis. Those are all owned by large Canadian public companies. The THC levels on these top sellers are much higher than what OGI offers.
No, if I do will post reply.
OGI not on this list https://www.leafly.com/news/strains-products/canadian-cannabis-strains-highest-thc
Read first few sentences at least!!!
Just stating facts, their Vapes are 63% THC many others are 80% THC and higher all for the same price. And Tweed has flower much more potent than OGI. It’s all online just look it up where they sell their trailblazer vape sticks or flower. It’s ditch weed grown in a first class facility. Can be an easy fix so don’t support their short comings.
Introducing new genetics is not hard would only take a cycle or two for them to dial in the environment. There are way more potent strains out there than OGI is growing.
Here is the email I sent them:
The U.S. should be an example of how sales will go there. I work in the Cannabis business here but cannot invest publicly so had read many good things and liked the mechanics you all use at your facility plus your cost per gram was great so invested here. I just recently went on some websites and looked at your products and have to say I was shocked to see how low your THC levels are. Flower that continue to sell out in the states are at levels of 27% or higher, when we get flower in that’s over 30% it literally is sold out in a day or two. The vapes are the same if your not 80% plus you will get minimal sales. You HAVE to get your THC levels up or you will never be an everyday users go to brand. Folks that smoke rarely or less frequent may prefer a lighter flower but they are not folks regularly purchasing product. Please have someone in the company go online and do some comparisons of your price to others and your THC levels to others. The trailblazer brand flower here would never leave the shelf if it scored in at 20% and yours is only 10%-15%. Even the Edison Reserve would be a weak strain here. Like I said you need to be 27% or higher on flower if you want to be a top brand and at least 25% if want some regular sales. You may get good initial sales since it’s a new market but doubt you will ever have a top selling brand if your THC levels stay so low. Best Regards
One thing holding OGI back is weak THC levels so most likely they will not have many restocking requests especially for the trailblazer flower or vapes. The flower coming in at 10% to 13% is like drinking non alcoholic beer. It’s ditch weed being grown in a first class facility. All they need is different genetics in there and they would be unstoppable. However as for now they may fail if they don’t change because you can increase production all you want but if your growing low THC flower and producing low THC vapes you will never get increased market share.
I email them this same information and all shareholders should be informing OGI when they have missed something or took a misstep. Just because they are a big company doesn’t mean they always make the right call so I am protecting my money by letting them know. Kissing their butt as they dropped from $8 to $2 is not good for anyone and was misleading as many here from $6 and down have been telling people to load up. How did that turn out? Also don’t forget the massive dilution coming.
Just open the link I attached and look at the related products below the trailblazer vape. The mg’s convert to percentage, and the others are 80% and higher. Obviously your not familiar with how to read the potency and how it’s listed or just didn’t open the link because it’s right there.
You’re in the minority then, I was correct about the low THC flower and most likely will be correct about their weak vape cartridges. Hey I have stock too but why sit silent while they are not addressing the majority of users.
If you have two items for the same price but one is stronger and works better your telling me because you live in Canada you will buy the weaker product for the same price. That makes no sense I’m just telling you what sells here and what sits on shelves and doesn’t sell. 63% is low for a THC vape and yes maybe some will buy but it won’t be the everyday user who is constantly purchasing new ones. I already emailed them inquiring on the low THC levels and pricing?
If they want to charge $10 less for the lower THC vape then that makes sense some may prefer to pay less to compensate for the lower % and save a buck but can’t charge the same.
OGI’s vapes are weak only 63% THC the other two listed (link below) are 80% and 85%. They will not get any market share with that weak product. Low THC products don’t sell when they are positioned next to higher THC vape carts for the same price. Took them two years to figure out their low THC flower wasn’t selling wonder how long it will take to figure this one out. See link below OGI is priced between the other two vapes available but much weaker.
https://www.delta9.ca/products/trailblazer-spark-vape
Agree, thought they were better than the others at one time though.
Yes that was the point they are not generating free cash flow so are not able to get a loan and now have to dilute shareholder value to continue business and a great deal is because they misread the market as all providers did it seems.
I would prefer traditional lending like they have always used and why I became a share holder. It should be a major red flag to anyone when they have to raise money vs. a traditional loan.
Your signaling to investors either you are no longer able to get conventional loans or that you just don’t care about your shareholders and your willing to burn their money vs. taking on debt. If they used this for an acquisition I am ok with that but nothing says this will be used for that actually the opposite looks to be true. Seems they need money ready for the two class action lawsuits coming against them. One for sure for selling tainted MJ back in 2015 and the second most likely coming for their cooling towers having elevated bacteria counts and residents contracting legionnaires disease. Revenue is declining there is an over abundance of MJ in Canada so producers are scaling back and OGI incurred millions in costs for grow rooms they are not even planning on using now actually they are talking about converting them for other uses.
This is going to get much cheaper.
Folks here are ok with the massive dilution coming but the buy ratings will be disappearing and neutral to sell ratings will be issued for OGI. As soon as that happens expect big ugly days of losses in the 10% range and then when the actual dilution kicks in expect more of the same. The stock price will be under $1 if they use the whole ATM don’t see how it could sustain anything higher.
You are correct so it goes from really bad to just bad, lol geez what happened to traditional financing. Did they max out what they could borrow and now have to penalize share holders. They misread the market and jumped the gun on the final buildout and have millions into it but now could sit empty for quite some time or may never be used to grow.
Adding 55million to a base of 156million will kill this stock. How can you add 33% more shares and expect the share price to hold, not a chance.
And the dilution begins no different than any other failing MJ company. They briefly showed signs of being a better play but with this mass dilution announced there are much lower share prices coming I feel.
It’s just bad for OGI either way, in regards to your statement why then didn’t any other companies get mentioned since the outbreak the only name you ever hear is OGI. Personally I don’t think anyone should be suing. Bunch of old money grabbers.
https://www.google.com/amp/s/www.cbc.ca/amp/1.5304163 They are most likely the source I stated, everything points to them.
I have no respect for the folks suing, there were way more than 16 or 20 people exposed yet only that many caught it. Most likely because they had weakened immune systems and now are trying to cash in on big corporate money because of their weaknesses. They should be ashamed for suing it’s a naturally occurring bacteria, geez.
Anyways it’s not good for OGI with signs pointing to them as source.
Been trying to tell people the same, and the class action lawsuit from them selling tainted flower in 2016 is still ongoing.
https://www.google.com/amp/s/beta.ctvnews.ca/local/atlantic/2019/11/25/1_4701000.html
I guess they are proceeding with a class action law suit that all signs pointed to OGI’s cooling towers as the source of Legionnaires. Personally not sure how you can sue for a naturally occurring virus but some people have no morales and blame others for anything that happens to them. And they are just looking for a payout, just ridiculous.
I emailed OGI about two years ago telling them their low THC flower was not a good idea and it wouldn’t sell. I also let them know the best sellers by me where it’s legal are the high THC strains. Obviously my email was pushed aside because it took them two years to figure out what I had already told them. Kind of sad. MJ is like diamonds the more pure or higher quality are what people want and they are willing to pay more for it.
These guys need an educated MJ person on board there because them growing flower with THC counts under 20% is a joke and really your best sellers will be 25%+ or we even have a few in the low 30% range and sell through like crazy here.
Agree dilution is coming. Guess they could not get a traditional loan as they can’t even forecast revenue right now with how screwed up the rollout is in some to most of the provinces. I don’t blame OGI for falling victim to the government’s strangle hold on the MJ industry but I do blame them for not foreseeing there was going to be a lull after the initial stocking. And the fact that the final grow phase has been halted as stated in the financials proved they misread the quantity of product they could move.
Let’s hope but not so sure about that and the bench offering if used is not baked in.
No one wants this stock right now, they are about to announce horrible earnings next week.
Also they may announce the dilution starting by using some of the offering they set up. We will get some up days here but it seems like just the oversold bounces up, once those numbers are released I would expect another significant drop.
This will drop below $1 U.S. if they initiate the $175 million offering.
Barely over $300 million market currently.
Another 52 week low set today, BASTARDS!!!!
Don’t think bleeding is over yet, this may drop below $2. The Canadian MJ companies have been crushed by the major markets. Would of been better off staying in the lower level markets (OTC in U.S.) where they were killing it. Been an extremely rough ride here ever since they hit the NASDAQ.
Company has performed poorly recently and pps shows that.
They screwed up on the cloning thing, got unlucky on the legionnaires issue, completely screwed investors with the offering and misled investors with the rampant growth article then shortly after giving guidance revenue will be down 40% this Q.
The offering is for close to half of their market cap right now, that’s major dilution.
Well most companies would not waste the time and money to set up the offering and not plan on using it.
Also what’s wrong with a line of credit from a bank, why dilute our shares? Could they not get a loan?
$175,000,000 US, the amount they plan on diluting is roughly ten days of trading with this volume every day. That’s a lot of dilution.
So this could just be the beginning and do you think they did the offering to have money available for the legionnaires disease lawsuit that may be coming their way?
Personally I think that anyone suing them is just being a money grabber as Legionnaires is a naturally occurring bacteria.
$2.95 US$ after hours that’s a big drop. Dilution coming and declining financials not a good mix.