2018-08-22 09:00 ET - In the News
See In the News (C-OGI) Organigram Holdings Inc
The Financial Post reports in its Wednesday edition that Ontario's cannabis agency has struck supply deals with 26 pot producers, resolving one of the market's significant remaining unknowns.The Post's Geoff Zochodne writes that the Ontario Cannabis Store's deal with licensed marijuana producers will "ensure that a safe, diverse and high-quality supply of cannabis is ready and available upon legalization this fall."
The spotlight will now shift to mergers and acquisitions and which companies can or cannot execute on their strategies. Greg Engel, chief executive officer of New Brunswick-based Organigram Holdings, one of the companies with an Ontario agreement, said there are still some smaller provinces that have to sort out their supply, such as Nova Scotia.
"You're going to see companies that are performing and delivering and hitting the commitments they have, and other companies that aren't." Mr. Engel said. Russell Stanley, an analyst at Echelon Wealth Partners, said there is also still an expectation for more consolidation in the cannabis sector, although the timing of that is difficult to predict. Mr. Stanley said that once supply agreements are sorted out, everyone will see everybody else's cards.
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