OrganiGram’s (TSXV:OGI) new boss is getting the thumbs up at PI Financial.
Yesterday, OrganiGram announced that it had hired Greg Engel to replace Denis Arsenault as CEO. Engel was recently the CEO of Tilray.
“We consider ourselves extremely fortunate to find and recruit Greg,” said Arsenault. “Greg emerged as the leading candidate following an international search. His experience and leadership will be instrumental as we enter the next phase of our growth. He added: “It has been three years to the day since I joined Organigram and I’ve achieved most of my goals as company CEO and believe it’s time for me to pass the torch to a seasoned executive with demonstrated leadership skills. I will stay active in the areas of investor relations and capital markets and look forward to working with Greg as he leads us through our next phase of expansion.”
Engel thinks OrgamiGram can reach the very top of its peer group.
“I consider this appointment an outstanding opportunity,” he said. “Organigram is poised to become one of the world’s leading marijuana producers; it will be gratifying to be part of a leadership team that helps the company achieve its goals.”
Zandberg commented on the news.
“We believe Greg Engel is a top-tier hire,” said the analyst. “During his tenure as CEO of Tilray he oversaw the creation one of the broadest lines of extracts for a Canadian MMJ licensed producer. Tilray launched 20 different extract products, including liquid capsules, drops, vaporizer oils, oral sprays and topical oils. This experience fits nicely with OrganiGram who have been building its own expertise in extracts.”
In a research update to clients today, Zandberg maintained his “Buy” rating and one-year price target of $3.75 on OrganiGram.
The analyst believes OrganiGram will post EBITDA of $2.12-million on revenue of $8.72-million in fiscal 2017. He expects these numbers will improve to EBITDA of $9.0-million on a topline of $27.4-million the following year.