LOS ANGELES- Organigram Holdings Inc., a significant player in the cannabis industry, has successfully closed the first tranche of a substantial investment from British American Tobacco’s subsidiary, BT DE Investments Inc. This move marks a significant step in the Canadian company’s expansion and diversification strategy.
The first tranche involves the acquisition of 12,893,175 common shares at C$3.2203 per share, amounting to C$41,519,891 in total. This is part of a larger C$124.6 million strategic equity investment, scheduled to be completed in two additional tranches by February 2025.
Central to Organigram’s strategy is the creation of the ‘Jupiter’ strategic investment pool, financed primarily by this investment. Jupiter is poised to target emerging opportunities in the cannabis sector, propelling Organigram’s footprint in new markets. This strategic approach aligns with the company’s emphasis on geographic expansion to capitalize on the burgeoning global legal recreational cannabis market.
Organigram’s decade-long presence in the Canadian cannabis landscape, complemented by successful acquisitions and investments, has fortified its market position. The company’s success in gummies, hash, and pioneering THCV products in Canada underlines its commitment to innovation and market leadership. The Jupiter initiative is set to amplify these capabilities on a global scale.
In conjunction with the investment, Organigram and the investor have entered into an amended and restated investor rights agreement. This agreement revises their previous arrangement and includes customary registration, pre-emptive, and nomination rights, among others. The details of this agreement are accessible on SEDAR+ and EDGAR websites.
This strategic partnership and the launch of the Jupiter investment pool signal Organigram’s intent to significantly broaden its market influence. By leveraging British American Tobacco’s investment, Organigram aims to fortify its position in the global cannabis market, navigating the complex regulatory landscape with a refined focus on legal compliance and product stewardship. As the industry evolves, Organigram’s strategic moves could set a precedent for how cannabis companies can effectively expand and diversify in a rapidly growing and changing market.
