OrganiGram stock drops after cannabis company reports wider loss, revenue miss

The U.S.-listed shares of OrganiGram Holdings Inc.
OGI,
+4.12%
dropped 2.3% in premarket trading, as the Canada-based cannabis company reported a much wider fiscal first-quarter net loss and net revenue that fell more than forecast, while adult-use recreational cannabis revenue jumped. The net loss for the quarter to Nov. 30 increased to C$34.3 million ($26.9 million) from about C$863,000 in the same period a year ago. The FactSet consensus for net losses was C$7.1 million. Gross revenue fell 11% to C$25.3 million ($19.8 million), while net revenue, which includes excise taxes, dropped 23% to C$19.3 million. The FactSet revenue consensus was C$20.3 million. Adult-use recreational net revenue rose 30% to C$16.8 million. Gross margin swung to a negative C$16.7 million from positive C$11.2 million. „We are pleased with our double-digit sales growth in the Canadian adult-use recreational market this past quarter as it reflects the success of many of our new product launches, particularly in the dried flower value segment,“ said Chief Executive Greg Engel. The company said the annualized run rate for adult use cannabis sales rose to a record $3.2 billion in October, based on data from Statistics Canada. The stock has soared 42.7% over the past three months through Monday, while the ETFMG Alternative Harvest ETF
MJ,
+3.92%
has hiked up 47.3% and the S&P 500
SPX,
-0.66%
has gained 7.5%.