Organigram Expands Market Presence with Strategic Investments and Acquisitions

LOS ANGELES- Organigram Holdings Inc., a Canadian cannabis producer, is actively broadening its market reach through strategic investments and acquisitions, supported by British American Tobacco (BAT).

In November 2023, Organigram secured a follow-on strategic equity investment of approximately CAD 124.6 million from BT DE Investments Inc., a wholly-owned subsidiary of BAT. This investment is being deployed in three tranches, with the first closing in January 2024 and the second in August 2024. The final tranche is anticipated to close by February 2025. The majority of these funds are allocated to a strategic investment pool named Jupiter, targeting emerging cannabis opportunities, including geographic expansion into the U.S. market.

Leveraging this financial backing, Organigram is exploring acquisitions of U.S. cannabis businesses to establish a foothold in the American market. The company has already invested in Phylos Bioscience Inc., a U.S.-based seed technology firm, and is actively seeking additional U.S. and international investment opportunities that align with its strategy to become a global leader in the cannabis industry.

Acquisition of Motif Labs Elevates Market Position

On December 6, 2024, Organigram announced the acquisition of Motif Labs Ltd., a Canadian cannabis extractor and brand curator, for an upfront consideration of CAD 90 million. This transaction comprises CAD 50 million in cash and CAD 40 million in Organigram common shares. An additional contingent consideration of CAD 10 million in shares is payable upon achieving certain milestones.

This acquisition positions Organigram as the largest cannabis company in Canada by market share, with a combined market share of 12.4%. Motif’s strong presence in the vape and infused pre-roll segments complements Organigram’s existing product portfolio, enhancing its competitiveness across multiple categories. The integration of Motif is expected to yield cost synergies exceeding CAD 10 million over approximately 24 months.

Organigram’s strategic initiatives, underpinned by substantial investments from BAT, reflect its commitment to expanding its market presence both domestically and internationally. By acquiring complementary businesses and investing in emerging markets, Organigram aims to strengthen its position as a leading player in the evolving global cannabis industry.