Organigram stock is in the red on Monday despite Organigram Holdings (TSX:OGI) (NASDAQ:OGI) announcing the release of new cannabis derivative products, including vape pens and cannabis-infused chocolate.
Organigram Stock Down Despite Vape Shipment
Organigram Holdings announced on February 20 that it had sent the first shipments of its Edison vape pens, developed through an exclusive agreement with Feather Company Ltd, a cannabis innovator that endeavors to produce premium-quality products to enhance the cannabis experience for consumers. The ready-to-use vape pens come in three aromatic profiles—Rio Brave, Lola Montes, and La Strada. Despite entering the high margin vape sector, Organigram stock is down 6% today.
“We’re pleased to release this advanced device, which will offer consumers a new consumption option,” said Greg Engel, Organigram CEO. “The sleek, subtle, compact design and intuitive function of the Edison powered by Feather device creates a distinct offering, especially when combined with our signature Edison formulations; a breadth of variety will help strengthen the appeal of the regulated market and we’re proud to contribute this line of products to the Canadian retail market.” Organigram stock is currently trading for $3.31.
In addition to shipping its first vapes through the Edison brand, Organigram Holdings has also completed its first run of Edison Bytes, the company’s premium cannabis-infused chocolate truffles. These products were developed following a C$15 million investment in a high-speed, high-capacity, fully automated production line, with products available as single chocolates containing 10 mg of cannabis each and sets of two truffles containing 5 mg each.
While the rollout of cannabis 2.o products looks likely to drive gains in Organigram stock when the market matures a little more, pot stocks across the board are a sea of red today as the coronavirus outbreak spurs a global market meltdown. The Dow plunged 1,000 points, or around 3.4%, on Monday, while The S&P 500 and the Nasdaq Composite also fell sharply at the start of the trading day after the number of cases reported in Italy and South Korea surged, putting two more major economies at risk.