Organigram Acquires Collective Project to Enter U.S. Cannabis Beverage Market

LOS ANGELES- Organigram Global Inc. has acquired Collective Project Limited, a producer of cannabis and hemp-derived infused beverages. The acquisition involves an initial payment of approximately 6.2 million Canadian dollars (about $4.3 million), with potential milestone and earnout payments that could total up to 24 million Canadian dollars (approximately $16.7 million) over the next two years.

Collective Project, based in Hamilton, Ontario, offers a range of cannabis and hemp-infused sparkling juices, teas, and sodas. These products are available in Canada and have expanded into ten U.S. states, including Minnesota, Ohio, North Carolina, South Carolina, Florida, Texas, Indiana, Tennessee, Georgia, and Kentucky.

Beena Goldenberg, CEO of Organigram, stated that the acquisition represents the company’s first commercial entry into the U.S. hemp-derived THC beverage market and accelerates its presence in the Canadian cannabis beverage sector.

The deal includes provisions for milestone payments of 2 million Canadian dollars each if certain sales targets are met in the U.S. hemp-derived beverage market by specified dates. Additional earnout payments are contingent upon achieving further revenue benchmarks over the next two fiscal years.