Organigram CEO warns of unsustainably cheap cannabis, reports CA$7.5M quarterly loss

The CEO of Canadian producer Organigram Holdings is warning about heavily discounted marijuana in that nation’s recreational market, saying that ultra-low prices are “not sustainable and (hurt) the cannabis industry.”

The company’s chief executive, Beena Goldenberg, said on a Wednesday quarterly earnings call that, although “many producers have discussed not wanting to participate in a race to the bottom, we are seeing the opposite in the market.”

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Goldenberg said large, 28-gram cannabis flower packages retailing for less than 100 Canadian dollars (roughly $75) have “increased by almost 300% over the past six months.”

“Large-format pricing in some markets has reached the point that, considering the cost of production and the excise tax burden, the products are being sold at a loss.”

Goldenberg added that Organigram’s “low-cost structure allows us to compete at these reduced prices” but said the Toronto-based company has “not matched the aggressiveness of

Read full article on Marijuana Business Daily


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