Organigram (TSX:OGI) Calls for Government Support in Cannabis Sector Development

Highlights

• Organigram urges the Canadian government to recognize cannabis as a major contributor to economic growth.
• The company advocates for reforms in taxation, elimination of interprovincial trade barriers, and a national cannabis export strategy.
• The legal cannabis industry has made a significant impact on Canada’s economy and job market.

Organigram Global Inc. (TSX:OGI), a leader in Canada's cannabis industry, is urging the federal government to provide more support to help the sector reach its economic potential. The company believes that with proper backing, cannabis can become a key pillar of Canada's economic future and contribute to the growth of TSX Healthcare stocks.

Legal cannabis has already made substantial contributions to Canada’s economy. The sector has bolstered the country’s GDP and created tens of thousands of jobs. However, Organigram emphasizes that to unlock the full economic benefits of the cannabis industry, further government action is necessary.

Government Support for Cannabis Sector Expansion

In a recent statement, Organigram congratulated Prime Minister Mark Carney on his election victory and used the occasion to urge the government to prioritize the cannabis sector as a vital element of the country's economic strategy. According to Organigram, the cannabis industry’s positive impact on the economy is undeniable, with substantial contributions to GDP and job creation across the country. The company believes that with government assistance, cannabis can play a crucial role in diversifying Canada’s economy and reducing reliance on traditional sectors.

Organigram has called for a series of policy reforms to ensure the continued growth of the cannabis sector. One of the key reforms they are advocating for is the reduction of taxation burdens on cannabis products. The company argues that high taxes limit the industry's competitiveness, making it harder for legal cannabis to compete with the illicit market. By lowering taxes, Organigram believes that consumers would be more inclined to purchase legal cannabis, thus contributing to stronger market growth and reducing the size of the illegal market.

Additionally, Organigram has highlighted the need to eliminate interprovincial trade barriers that currently hinder the seamless movement of cannabis products between provinces. These barriers create logistical challenges and inefficiencies that prevent the industry from reaching its full potential. Organigram urges the government to work toward harmonizing regulations and promoting easier movement of cannabis products across Canada.

Advocating for a National Cannabis Export Strategy

Another significant request from Organigram is the development of a national cannabis export strategy. While Canada has made considerable strides in legalizing cannabis for domestic use, there is still much untapped potential in international markets. Organigram emphasizes the importance of developing a strategy to position Canada as a leader in the global cannabis market.

By establishing a strong export strategy, Canada could capitalize on the increasing global demand for legal cannabis. The company sees this as a key step in enhancing the competitiveness of Canada’s cannabis sector on the world stage. With the right policy framework, Canada could become a hub for cannabis exports, generating significant revenue and contributing to the country’s economic prosperity.

The Economic Impact of Canada's Legal Cannabis Industry

The Canadian cannabis industry has been a notable success since its legalization. It has generated significant economic activity, contributing to GDP growth and creating jobs across various sectors, from cultivation to retail. Legal cannabis businesses also support ancillary industries, such as packaging, distribution, and technology services.

According to Organigram, the cannabis sector has helped to reduce the size of the illicit market, providing consumers with a safer, regulated alternative to illegal products. This shift has been vital in driving economic benefits and increasing the industry's legitimacy. However, Organigram asserts that the full benefits of legalization can only be realized if the government provides continued support through reforms in taxation, trade, and export strategies.

While the cannabis industry has made significant strides in Canada, there is still much room for improvement. Organigram believes that by addressing the challenges faced by the sector, the government can help cannabis businesses thrive, benefiting not only the companies involved but also the broader Canadian economy.