Certain oversold marijuana stocks are emerging as compelling buys, offering great value and promising prospects. Today, I want to highlight one such stock that stands out in the marijuana sector. It’s a company that has navigated the industry’s challenges and is now positioned to capitalize on the industry’s tailwinds and the easing pressure on risk assets.
If you’re curious about which marijuana stock could be a valuable addition to your portfolio, especially in these volatile times, keep reading. This might be the opportunity you’ve been waiting for.
Organigram Holdings (TSE:OGI)
Organigram is a noteworthy player in the marijuana industry, primarily operating in Canada. The company has carved out a significant niche for itself, becoming the second-largest player in Canada’s cannabis market. This success is largely attributed to its thriving pre-roll and gummies businesses.
Recently, OGI‘s shares received a substantial boost following a major development. The company announced a private placement of shares worth 124.6 million Canadian dollars to British American Tobacco (LON:BATS). This strategic move resulted in a pre-market jump of approximately 33% for OGI stock.
This investment from BAT is not just a financial infusion but also brings strategic advantages. It allows BAT to hold up to 30% of Organigram’s board seats, potentially guiding the company towards more robust growth and expansion strategies. The funds are earmarked for driving Organigram’s expansion and supporting its general corporate activities.
With the backing of a major investor like British American Tobacco and its strong position in the market, OGI stock presents an attractive investment opportunity. Its growth trajectory, coupled with the evolving landscape of the marijuana industry, positions Organigram Holdings as a potentially lucrative stock for investors looking to tap into the marijuana market’s resurgence.