Cannabis Watch: Failed marijuana experiment slams Organigram earnings

Organigram Holdings Inc. said Monday that growing marijuana cost it nearly 50% more in cash and harmed its earnings last quarter because the cannabis company tried — and failed — to develop a more efficient growing technique.

Cash and all-in costs of cultivation increased to C$0.95 and C$1.29 per gram of dried flower, respectively, from C$0.65 and C$0.95 per gram in the previous quarter. The costs stemmed from attempts to develop an alternative technique to plant fresh cannabis that worked with a few strains of cannabis but didn’t work at large scale, Organigram OGI, +4.63%OGI, +4.21% Chief Executive Greg Engel told MarketWatch in a telephone interview.

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