Denis Arsenault couldn’t believe what he was seeing. When his company, OrganiGram Inc., made its debut on the TSX Venture Exchange this summer, the shares suddenly shot up.
Such a high valuation didn’t make sense – not even to Mr. Arsenault, and he was the company’s chief executive officer.
Just a few weeks earlier, OrganiGram, an upstart producer of medical marijuana based in Moncton had been valued privately at just over $40-million. But on the open market, speculators feverishly drove up the total value of shares to nearly $120-million in late August.
It wasn’t that Mr. Arsenault didn’t believe in the future of his business. OrganiGram is one of only 15 companies to land a highly coveted federal licence in Canada’s new medical marijuana sector, touted as a potential multibillion-dollar industry in the years to come.
But the company hadn’t made a dime yet. OrganiGram was probably a year away from pulling in meaningful revenue – and it was already worth nine digits in the stock market.
– Read the entire article at The Globe and Mail.