OrganiGram's introduction to the Canada's Recreational Cannabis market wasn't too bad. They have released in their latest quarter results & the numbers show that they made $12.4 million in sales which is also $2.4 million higher than last year at the same three month period ending on November 30th, especially when Stats Canada reported sales of Recreational Cannabis for November totaled $54 million.
But, Hey it`s me, Captain Buzz Kill, been a few weeks, we know that they are going to need it because of the green-lit class action law suit that the Supreme Court of Nova Scotia approved to go to trail on January 18th, 2019 after it was filed in 2017 due the 'voluntary' recalls(Type 3, “a situation in which the use of, or exposure to, dried marijuana, fresh marijuana or cannabis oil, marijuana plants or seeds is not likely to cause any adverse health consequences“ ) during that year & also in 2016 after it was found that their medical products contained some banned pesticides for five lots(cannabis produced to be tracked for situations such as this).
$2.4 million is a cheap deposit though when it comes to great trail lawyers when a company is facing charges of supplying medical cannabis patients with tainted products. It is even worse that the company is claiming that they have already reimbursed most of the patients effected.
Buzz Kill again, what the company is not tell us about is the Type 2(Type 2 which the use of, or exposure to a product may cause temporary adverse health consequences, or where the probability of serious adverse health consequences is remote) recalled lots of which there was 69 a percentage increase of 1280% compared to Type 3. Also there was trace amounts of
myclobutanil. These trace amounts that were found are acceptable for vegetables & fruits but that is because we are all washing our food off before we eat it right?!?, as reported by Health Canada.
Unfortunately, this is not the case for medical cannabis patients especially
when myclobutanil is burned, it produces the toxic gas- hydrogen cyanide, a toxic gas that can cause dizziness, trouble breathing and vomiting at low levels of exposure. Again these products were strictly sold to medical cannabis patients from December 2016 to January 2017 or for all products produced between February 1st to December 16th 2016 as the company also updated in the report to Health Canada.
It is egregious, to say the least, when the company is trying to spin this it in the media by saying that they like their chances in court because it is up to each individual to prove that the alleged health effects they suffered were the actual cause of their medical cannabis. If I was a registered patients I would RUN right now from them because they are only worried about their bottom line & improving their stock price.
By the way, OrganiGram`s (OGI.V) stock closed up $1.14(19.16%) to $7.09 today.