OrganiGram (OGI) stock was down by 52% over the past month. The company released its second quarter fiscal 2021 results on April 13, which seems to point out that the issues the company has now.
During Q2 2021 (ended Feb. 28), the company's net revenue was $15 million for this period, which a decrease of 37% year-over-year, and its net loss was $66 million, which an increase of 872% year-over-year. The decline in revenue is the result of lower prices for its products, lower wholesale volume, and a lack of brand popularity. The increase in loss is the result of the negative change in the fair value of the derivative warrant liabilities and the negative gross margin in Q2 2021.
Although the company believes that the acquisition of the Edibles & Infusion Corp will help boost its revenue, its first sales of soft chews products need to be in Q4 2021 and generate revenues for the company, but this kind of acquisition isn't going to drive its core business growth forward.
As the competitive and challenging cannabis industry, the company’s lower profitability and declining sales might impede its growth in the near term, this means that its shares may retreat further in the coming months.
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