Organigram Highlights Early Sanity Results While Holding Canadian Market Lead

TORONTO – Three months after closing its largest international acquisition to date, Organigram Global Inc. has delivered the first combined business update covering Sanity Group’s early performance alongside the company’s ongoing Canadian market position. The disclosure puts preliminary numbers on the table for investors watching how quickly the German unit can pull its weight inside the consolidated business.

Organigram Global Inc. provided an operational update following the close of its acquisition of Sanity Group GmbH, completed for €107.3 million upfront, paid as €78 million in cash and €29.3 million in Organigram shares.

Sanity’s initial post-acquisition performance is tracking to plan. Management had projected the German subsidiary to generate roughly €25 million in average quarterly net revenue for the balance of calendar 2026, based on Germany’s market trajectory and Sanity’s pre-deal expansion. The Berlin-founded company entered Organigram’s portfolio with strong fundamentals: annual net revenue grew from €9 million in 2023 to €60 million in 2025, gross margins climbed from 15% to 47% over the same span, and its estimated German market share ranking rose from fifth to second between January 2025 and January 2026.

In Canada, Organigram retained the number one overall position in the recreational Cannabis market, leading in vapes, milled flower, and concentrates, and ranking second in both flower and pre-rolls. That standing held despite the company’s second fiscal quarter, posting a net revenue decline of roughly 9% year-over-year, pressured by vape share erosion and infused pre-roll production disruptions. Both issues have since been addressed through quality control upgrades and new high-potency product introductions.

CEO James Yamanaka characterized the domestic challenges as largely contained to the fiscal first half, with Sanity’s full financial contribution beginning in the third quarter expected to support improved execution in the back half of the year. CFO Greg Guyatt noted that the company’s underlying cost structure continues to improve, supported by higher yields, operational efficiencies, and prior automation investments at the Moncton campus.

An EU-GMP certification for the Moncton facility remains a pending milestone. Organigram submitted all outstanding documentation to the regulator in April 2026 and is awaiting final confirmation. The clearance would allow Moncton to supply Sanity’s German distribution network with higher-margin flower and extract products, improving the European unit’s cost structure.

Following the acquisition close and a revenue recognition adjustment [Sanity’s sales are now booked upon final third-party sales rather than intracompany shipments] Organigram revised its fiscal 2026 net revenue guidance upward from a target above C$300 million to one above C$350 million. Adjusted EBITDA and gross margin are both expected to exceed fiscal 2025 performance.

The Sanity deal includes a performance-based earnout worth up to €120 million, contingent on the German subsidiary hitting at least €143 million in net revenue and €20 million in positive EBITDA over the 12-month period ending April 2027.

Organigram’s integration of Sanity marks a structural shift in how the company will be assessed going forward, transitioning from a Canadian operator with international export exposure to a genuine dual-market operator with real P&L accountability in Europe. The key variable for the rest of fiscal 2026 is clear. Sanity’s consolidated quarterly contributions need to offset domestic softness and make the revised C$350 million revenue target look achievable without stretching margins. EU-GMP clearance at Moncton will sharpen that calculus considerably.