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Friday, March 31, 2023

OrganiGram (NASDAQ: OGI) Stock Soared Friday. Here’s Why

Shares of OrganiGram Holdings, Inc. (NASDAQ: OGI) skyrocketed on Friday’s session after the positive analysis of the forecasters. Earlier on Monday, OrganiGram disclosed that it has obtained an investment of $221 million Canadian ($177 Million) from British American Tobacco (NYSE: BTI). Both the firms have also signed the product development agreement.

As per the deal, both the firm will collaborate and leverage the intellectual property of each other and also jointly develop the new cannabis products and revealed that their special focus will be on CBD. As per the deal, both the firms will also have the opportunity to independently market the products globally.

Furthermore, OGI deemed this agreement a valuable opportunity to offer sophisticated cannabis products to its customers and also advance the long-term strategy of the firm. OGI is anticipating that this deal will bring revolution in OrganiGram and also provide value to its shareholders.

OrganiGram (NASDAQ: OGI) shares soared 9.90% during the trading session of Friday as the firm has gained +0.40 on Friday. Looking at its trading volume, it has reported a volume of 60.94 million as compared to the average volume of $23.84 million. OGI market capitalization has remained high, reaching $1.03 billion at the time of writing.

Raymond James expert Rahul Sarugaser concurs with De Luca. On Tuesday, Sarugaser restated his outperform rating on Organigram’s stock and increased his price projection from CA$300 ($2.40) to CA$6.00 ($4.80). The experts of the firm project that the collaboration will aid OGI to grow its share of Canada’s fast-growing adult-use cannabis market to 12.5% by 2025 from 6.5%. They predicted that its income generated, in turn, will grow to $583.9 million in 2025 from $86.8 million in 2021.

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