OrganiGram Holdings Inc Q3 2021 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Andrew Partheniou - Stifel Nicolaus Canada Inc., Research Division - Analyst : Maybe I could just discuss profitability a little bit. You had a big revenue bump this quarter sequentially, but it seems like on a reported adjusted gross margin basis, it was relatively stable, cognizant that you still have some unabsorbed fixed costs in that and you're continuing to scale. So if your product mix remains stable, could you give us a sense of what kind of revenue level we would need to see in order for you to return to kind of pre-COVID gross margin levels or normalized gross margin?

Question: Andrew Partheniou - Stifel Nicolaus Canada Inc., Research Division - Analyst : Okay. And maybe just switching gears. Health Canada is expected to start the review of regulations this fall. Just curious if you have any thoughts around that? More specifically, perhaps on CBD and how that plays into the BAT partnership?

Question: Andrew Partheniou - Stifel Nicolaus Canada Inc., Research Division - Analyst : Okay. Do you have any view on what changes might occur?

Question: Tamy Chen - BMO Capital Markets Equity Research - Analyst : First question I had is on the thinking behind the decision to complete the Phase IV expansion, I noticed another one of your competitors recently brought on a lot of new capacity on their end. So I just wanted to dig into that a bit further. You talked about wanting to meet longer-term forecasted REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 13, 2021 / 12:00PM, OGI.TO - Q3 2021 OrganiGram Holdings Inc Earnings Call demand. But as far as I think we can see, at least in the earlier part of this year, provinces were still rationalizing SKUs. It looks like there have been some share losses among the bigger LP, apparently to some craft growers. So I just wanted to understand what specifically are you seeing that prompted the decision to finish Phase IV? Is it discussions with provinces going forward? Or is it that you're just getting more bullish on more Ontario stores? Just wanted to dig into that a bit more.