Organigram Seeks U.S. Expansion Despite Edibles Setback
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Organigram Holdings is planning to enter the U.S. cannabis market by acquiring a minority stake in Open Book Extracts, a North Carolina cannabis company.
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Organigram aims to raise around C$25 million to fund its expansion plans and other corporate purposes.
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However, Health Canada declared Organigram's Edison Jolts cannabis lozenges as edibles instead of extracts, which may hurt cash flow.
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Even so, the large U.S. cannabis market presents major growth opportunities for Organigram.
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Analysts rate OGI stock a Strong Buy with an average price target of C$3.73 per share, implying 23.61% upside potential.