Organigram stock is making gains on Monday as the Canadian cannabis producer looks to the legalization 2.0 market to help transform its fortunes after a disappointing year in 2019.

After a difficult first year of legalization for pot stocks across the board, many firms are scrambling for a way to differentiate themselves from the rest of the market, and CEO of Organigram Holdings (TSX:OGI) (NASDAQ:OGI) Greg Engel believes his company has just the formula. Through a mix of really promising industry partnerships, investment in international opportunities, a varied approach to funding, and an impressive cannabis 2.0 portfolio, Organigram stock could be one of the biggest gainers in the year ahead.

Cannabis 2.0 Rollout

The first wave of cannabis 2.0 products received the green light to go to market in December 2019, with almost every major pot producer betting big on a space that could be worth as much as C$2.5 billion. Organigram Holdings is no different and has launched a range of Trailblazer vapes through an exclusive agreement with vape technology company Feather, as well as investing C$50 million in a production line for its premium chocolate products, which can produce 50,000 to 60,000 of its Edison Bytes in a single shift. Organigram stock is currently trading for $3.04.

It’s not just the Canadian market where Organigram is poised for gains in the coming months. In 2018, the company took up a 25% stake in German medical use firm Alpha-Cannabis Germany (ACG), as well as penning a lucrative supply deal to Australia. Upon receipt of EU GMP certification for its Moncton facility, Organigram will be well placed to execute further on these partnerships and expand its presence in Europe. Despite the Covid-19 outbreak wiping almost 30% from Organigram stock in recent weeks, it is bouncing back around 2% today.

Analysts See Major Upside for Organigram Stock

While many of its peers have been plagued with financing issues in recent weeks, Organigram Holdings has insulated itself through a varied approach to financing. Through a mix of traditional equity financing, a convertible debenture, traditional debt, and an ATM offering, the firm is well capitalized to continue investing in facility expansion and automation. While the company does not release guidance, analysts’ consensus target on Organigram stock is $6.30, a 107% upside on the current price.

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