Trending >

Is Organic Garage stock a buy?

Organic Garage is an independent organic and natural foods grocer with business in the Toronto area. The company is owned by retail and CPG company Oragin Foods (Oragin Foods Stock Quote, Charts, News, Analysts, Financials TSXV:OG.H), which did trade on the Toronto Stock Exchange’s junior board, the Venture Exchange.

Trading was halted on Oragin Foods last November after the company received a failure-to-file cease trade order (CTO) from the Ontario Securities Commission. Then, earlier this month, Oragin released an announcement, saying that effective June 5 the company’s shares will move from the TSX Venture to the NEX Board, a subsidiary of the TSXV, under the symbol OG.H. 

The company said the move was prompted by a failure to meet Exchange requirements and that the shares will continue to be suspended from trading until further notice.

“Both our retail and CPG divisions continue to operate normally and the Company has sufficient cash on hand to meet its day-to-day obligations pertaining to all areas of business. This move to the NEX from the Exchange was expected as part of the process the Company is working through and its positioning for long-term value,” said Oragin CEO Matt Lurie in a press release.

Organic Garage has a history dating back to the mid-1900s in Toronto and bills itself as the largest organic grocer in Canada. Oragin Foods has Organic Garage as well as The Future of Cheese CPG company. 

Last fall, news arrived that four independent board directors for Oragin had resigned, with the members having been on a special board committee to evaluate strategic options after the company had failed to pay holders of its unsecured debentures issued in October 2019 and with maturities in October 2022. The company said it was working with the debt holders to arrive at a mutually beneficial set of terms. 

The TSXV’s cease trade order is related to the resignations, since companies require at least three board directors in order for the company to file its quarterly finances, hence the suspension of trading.

Before its suspension, Oragin Foods’ share price had been at a high of about $0.90 in early 2021 but dropped gradually from there to below $0.10 per share by September 2022.

We Hate Paywalls Too!

At Cantech Letter we prize independent journalism like you do. And we don't care for paywalls and popups and all that noise That's why we need your support. If you value getting your daily information from the experts, won't you help us? No donation is too small.

Make a one-time or recurring donation

About The Author /

insta twitter facebook