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Organigram Holdings Inc. (Nasdaq: OGI) beat analyst expectations Wednesday off the heel of a major acquisition announcement, despite remaining in the red for now.

The Toronto-based producer posted fiscal fourth-quarter revenue of C$44.7 million that beat Yahoo Finance’s average estimate of C$39.12 million.

Still, the company reported a net loss of C$5.4 million in its fourth quarter, though a substantial improvement from a C$26.6 million loss in the same period last year. Revenue rose 22% from C$36.7 million a year earlier, while adjusted EBITDA surged to C$5.9 million from C$100,000 in the same period. The company’s adjusted gross margin expanded to 37% from 20% year-over-year.

“We are pleased with the growth we achieved every quarter in fiscal 2024, ending the year on a high note with respect to net revenue and adjusted EBITDA,” CEO Greg Guyatt said in a statement.

Organigram said it expects to leverage lower-cost seed-based technology by targeting approximately 20% of harvests from seeds in fiscal 2025, with monthly fluctuations between 15% and 30% depending on cultivar requirements. The company also anticipates its recent EU-GMP certification, if successful, will drive increased international sales, according to the earnings release.

For the full fiscal year 2024, Organigram’s net revenue increased 6% to C$159.8 million while its net loss narrowed by a chunk to C$45.4 million from C$247 million in the previous year. The improved bottom line reflects higher margins and lower impairment charges, according to company filings.

The earnings release comes as Organigram completed its C$90 million acquisition of Motif Labs in last week, which CEO Beena Goldenberg has said establishes the company “as Canada’s largest cannabis company by market share.”

The company’s investing C$21 million in German cannabis leader Sanity Group while increasing its international supply partners from five to eight during the fiscal year. It recently completed an EU-GMP audit at its Moncton facility and expects certification to support growing international revenue.

“We made smart, strategic investments, including into seed-based technology and automation, which is increasing efficiency,” Goldenberg noted.

The final tranche of a C$124.6 million investment from British American Tobacco is expected to close in February 2025, providing an additional C$41.5 million in capital. The company said this funding, along with its current cash position of C$133.4 million, provides “sufficient” liquidity to meet its strategic and operational objectives in fiscal 2025. Around C$55 million of its current cash was used to fund the Motif acquisition.