Organigram Announces Investment in Open Book Extracts

NEW YORK- Organigram Holdings, a Canadian cannabis company, announced a $2 million investment in North Carolina-based Open Book Extracts. This move signifies Organigram’s entry into the U.S. cannabis market, facilitated by an investment from British American Tobacco (BAT) into Organigram’s Jupiter fund, aimed at supporting expansion efforts.

The investment, made as a convertible note, provides Organigram an equity position in Open Book Extracts, marking a strategic step in Organigram’s market expansion strategy. Paolo De Luca, Organigram’s Chief Strategy Officer, highlighted the investment’s importance in the company’s growth blueprint.

This venture is not only a financial investment but also aims at joint research and development between Organigram and Open Book Extracts, focusing on product development and technological innovations in the cannabis sector.

In addition, Organigram has entered an underwriting agreement with ATB Securities to sell approximately 7.74 million units at CA$3.23 each, aiming to strengthen its financial position, although the total expected capital raise was not specified.

This initiative by Organigram to invest in Open Book Extracts reflects a strategic approach to growth and market diversification, particularly within the U.S. cannabis market. It showcases the company’s efforts to adapt and grow through international collaborations in a changing regulatory environment.