Organigram Holdings Secures Supply Agreement for UK Medical Cannabis Market

LOS ANGELES — Organigram Holdings, a Canadian licensed producer, has entered into a supply agreement with 4C Labs, a UK-based medical cannabis cultivator and digital healthcare provider. The partnership aims to provide dried medical cannabis flower to the growing United Kingdom market.

While the financial terms of the deal remain undisclosed, Organigram anticipates supplying approximately 600 kilograms (1,323 pounds) of dried flower to 4C Labs within the first year of the agreement.

Further solidifying the partnership, Organigram has granted 4C Labs exclusive rights to specific cannabis strains in the United Kingdom and the Channel Islands. This exclusivity remains in effect as long as 4C Labs meets undisclosed minimum purchase commitments.

“Medical cannabis has been legal in the U.K. since 2018. However, the region faces challenges in accessing consistent, high-quality products due to significant energy cost premiums compared to Canada. This makes importing medical cannabis a viable solution for the expanding UK market,” stated Beena Goldenberg, CEO of Organigram.

The move is part of Organigram’s broader strategy to expand its international footprint. In a recent regulatory filing, the company highlighted its expectations for increased international revenue. This optimism stems from a multiyear supply agreement with Canndoc in Israel, continued shipments to Medcan and Cannatrek in Australia, and a new supply agreement with Germany’s Sanity Group.

For the first nine months of the fiscal year, Organigram reported international sales from flower and oil at 18.4 million Canadian dollars ($13.4 million). This figure marks a notable increase from CA$9.2 million during the same period the previous year.

The deal with 4C Labs underscores the growing demand for medical cannabis in the UK and Organigram’s strategic moves to capitalize on international markets. As the global landscape for cannabis continues to evolve, partnerships like these signal a shift towards a more interconnected global market.