Organigram Holdings Inc. (NASDAQ: OGI) was one of the top stock market gainers on Wednesday after the cannabis and cannabis-derived products seller posted earnings. Many pot stocks have tried to recover over the past month, but in general the cannabis stocks remain firmly down from highs, and many legalized marijuana investors have to feel burned over how much money has been lost in this group since the highs in 2018 and 2019.

One issue that has attracted investors to Organigram is that the company developed a proprietary nano-emulsification technology that targets an initial cannabinoid absorption time of just 10 to 15 minutes. That process generates micro-particles that are very small and is expected to come with an absorption rate and onset of effect that is much faster than other absorption times.

Organigram announced that its net revenue in the first fiscal quarter of 2020 more than doubled to $25.2 million from $12.4 million a year earlier and that gross revenues rose to $28.448 million from $14.479 million a year earlier. While the revenue gain was large, the company noted that the adult-use recreational cannabis was only legalized on October 17, 2018, and that implies that the gains would have been even greater had it been legal for the entire quarter of operations.

The company also showed that its gross margin (before fair value changes to biological assets and inventory) of $9.3 million, or 37% of net revenue, compared to $8.8 million or 71% of net revenue a year earlier. The company’s net loss of $0.9 million was against net income from continuing operations of $29.5 million a year earlier, but the company showed that this significant change was largely due to noncash fair value changes to biological assets and inventories in the prior-year quarter. It further showed that SG&A expenses represented 37% of net revenue this last quarter, up from 36% a year earlier.

The company’s press release included several updates on existing and upcoming cannabis products. It confirmed that Organigram began shipping the Trailblazer Torch vape cartridges on December 17, 2019. It also expects to begin shipping Edison + Feather ready-to-go distillate pens before the end of January, and it plans to begin shipping the Edison + PAX ERA distillate cartridges in the second quarter during 2020. After receiving a licensing for chocolate production and packaging areas in December 2019, the company also sees its launch remaining on target for sales of cannabis-infused chocolates to begin during the first quarter of 2020.

After ending the latest quarter with $34.1 million in cash and short-term investments, the company believes it has ample capital to fund its operations and capital expenditure plans. Organigram also currently still has $30.0 million in undrawn capacity on its term loan, as well as an additional $32.1 million available to raise under its total $55 million at-the-market equity program after having raised some $22.9 million before the end of last quarter.

Greg Engel, CEO of Organigram, said:

Despite ongoing industry challenges, we are pleased with solid Q1 2020 results and our return to positive adjusted EBITDA during the quarter. Our team was also successful in shipping the first of our Rec 2.0 products as planned and on schedule in December of 2019. We also look forward to the launch of the remainder of our vape pen portfolio followed soon after by our premium cannabis-infused chocolate products. In addition to an exciting line-up of 2.0 products, we are rolling out a couple of new core strains, such as our high THC Edison Limelight, across the country following their success as limited-time-offers in smaller markets.

Organigram shares traded up 29% to $2.79 Wednesday morning, but the 52-week trading range of $1.89 to $8.44 should show just how volatile these shares have been. Its market cap was $430 million on last look.

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