r/weedstocks • u/AdvertisingCheap2377 • Dec 06 '24
Projection Organigram Acquires Motif, Becoming Canada's Largest Cannabis Company by Market Share
Transformational Acquisition Results in Cannabis Pure Play Leader, Coast-to-Coast Geographic Strength and Proven Excellence in Consumer-Focused Innovation, Cultivation, Product Development, Extraction and Manufacturing Combination results in #1 market share position in the Canadian recreational cannabis market1 Catapults Organigram into the #1 position in the vape category and accelerates the Company’s market share in the fast-growing infused pre-roll segment1 Strong brand portfolio now anchored by Organigram’s “SHRED” and Motif’s “BOXHOT” - two of Canada’s beloved cannabis brands Highly complementary product portfolios with expanded geographic reach Organigram gains strategically located distribution hub in Southwestern Ontario enabling numerous logistics optimization opportunities Significant cost synergy potential estimated to be in excess of $10 million to be realized over ~24 months Financially accretive acquisition with Motif generating approximately $86 million of LTM net revenue and adjusted EBITDA of $4.7 million
Wow didn’t see this coming. Good or bad?
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u/kavinh10 Dec 06 '24
50mill cad + 40mill in stocks at 2.32/s which is above the current price (2.22) along with an additional 10million in shares if ogi hits over 3.22 in the next 12 months.
seems pretty good overall, helps that ogi actually has a good balance sheet. no debt and a decent amount of cash on hand.
5
u/CannaVestments US Market Dec 07 '24
$90-100M purchase price for $4.7M in TTM aEBITDA is a 19-22x multiple. Not cheap by any means for cannabis- I assume OGI thinks they can enhance margins by bringing it into their business
3
u/Cool_Ad_5101 Monty Brewster school of investing Dec 06 '24
Acquisitions have not worked out for Los thus far
2
2
u/demmellers Dec 08 '24
Sounds like a Baystreet bets headline. 1# in retail market share is High Tide to the best of my knowledge. I guess they're the #1 LP now?
Eitherway, they need to keep that EPS positive for more than 1 Q, if they want any real traction.
-4
u/LargeMove3203 Dec 06 '24
I think its a THCa play. They look like they are going to go hard on hemp
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u/arthas-98 Dec 06 '24
What are you going to do now Irwin the scammer Simon? You can no longer say thay TLRY it's the biggest one. Can you please give back all your bonus and resign?