Why OrganiGram Stock Jumped 20% in May
May was a tale of two halves for OrganiGram Holdings (NASDAQ: OGI). The cannabis company released surprising news at the start of the month that brought its share price down. But the stock ended May up by 20.9% for the month, according to data provided by S&P Global Market Intelligence. The sharp reversal was driven by some good news from a large partner, as well as positive developments for the cannabis sector in general.
OrganiGram surprised investors early in May when it announced that CEO Greg Engel would be leaving that role immediately, and that his interim replacement would be board Chairman Peter Amirault. Engel will remain as a special advisor to the board of directors during an undefined transition period. No reason was given for the change.
Investors don't like uncertainty, and that news led to about a 5% drop in the share price. But starting around mid-month, the news became more positive.
Source Fool.com
