OrganiGram Holdings Inc. OGI, -9.18% said Tuesday it had a net loss of C$66.4 million ($52.8 million) in its fiscal second quarter to Feb. 28, wider than the loss of C$6.8 million posted in the year-earlier quarter. The Canadian cannabis company did not provide a per-share figure. Revenue fell to C$14.6 million from C$23.2 million. The FactSet consensus was for revenue of C$19.1 million. Revenue was hurt by missed sales opportunities, as a “significant number” of facility staff had to isolate after certain employees tested positive for COVID-19. The company said last week it had acquired The Edibles & Infusions Corp. for C$22 million in stock, plus up to an additional C$13 million in shares, in its first deal since receiving a C$221 million ($176 million) investment from British American Tobacco PLC. It said it was unable to fulfill demand for its products totaling about C$7 million in the second quarter due to production and processing constraints. Revenue was further hurt by certain provincial boards aiming to manage lower levels of inventory, it said, citing Alberta as an example. “Although Q2 2021 results were challenged by industry dynamics, COVID-19 and staffing limitations at our facility, we believe there are excellent prospects ahead for the industry, Organigram and our shareholders,” Chief Executive Greg Engel said in a statement. The company is expecting third-quarter revenue to be higher than the second quarter as staffing is restored and fulfilment rates recover. However, that target could be missed if COVID infections resurface. The company said it has C$232 million in cash and short-term investments and has repaid all balances under its credit agreement with BMO. OrganiGram shares were down 10% premarket, but have gained 107% in the year to date, while the Cannabis ETF THCX, -5.74% has gained 48% and the S&P 500 SPX, -0.02% has gained 9.9%.
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