News Release06 November 2023
BAT to Strengthen Strategic Partnership with Organigram
- BAT subsidiary deepens strategic partnership with Organigram, investing c.£74m (CAD$124.6m) between January 2024 and January 2025 and increasing its equity position from c.19% to 45%
- Organigram is a leading Canadian licensed producer of cannabis
- Investment enhances Product Development Collaboration, which has been focussed on cutting-edge R&D and product innovation
- Organigram to establish strategic investment pool, intended to be applied for emerging opportunities and its investments within the cannabis space
This investment is intended to deepen the strategic relationship between Organigram Holdings Inc. (Organigram) and BAT, which has strengthened since BAT’s initial investment and the establishment of the Product Development Collaboration (PDC) in March 2021. The PDC was set up to leverage the expertise of both companies, in order to develop the next generation of non-combustible cannabis products.
BAT is pleased with Organigram’s performance and continues to be impressed by the careful financial governance of the company. BAT also remains supportive of the category stewardship displayed by Organigram’s management team, particularly in response to tough market conditions. These factors give BAT confidence that the new investment can position Organigram to capitalise on market opportunities and deliver incremental value for both companies.
The majority of the investment will be allocated for Organigram to establish a strategic investment pool, intended to be applied for emerging opportunities within the cannabis space to accelerate Organigram’s growth and to support geographic, technological and product expansion. The investment remains subject to customary conditions, including necessary approvals by the shareholders of Organigram.
Since March 2021 BAT has made a series of minority investments in the cannabis space through carefully selected partners. BAT continues to explore future opportunities by partnering with and learning from its cannabis investment companies, which includes Organigram.
Organigram is a NASDAQ and TSX listed company that has a proven track record of consumer-led innovation and developing high quality adult-use recreational and medical cannabis products, which are legally available in Canada.
Notes to Editors
BAT has considered its obligations under applicable laws and regulations in undertaking this transaction and has taken appropriate measures to ensure compliance with such laws.
About Organigram Holdings Inc.
Organigram Holdings Inc. is a NASDAQ Global Select Market and TSX listed company whose wholly owned subsidiaries include: Organigram Inc. and Laurentian Organic Inc., licensed producers of cannabis and cannabis-derived products in Canada.
Organigram is focused on producing high-quality cannabis for patients and adult recreational consumers, as well as developing international business partnerships to extend its global footprint. Organigram has also developed and acquired a portfolio of legal adult-use recreational cannabis brands. Organigram operates facilities in Moncton, New Brunswick and Lac-Supérieur, Quebec, with a dedicated edibles manufacturing facility in Winnipeg, Manitoba. The Company is regulated by the Cannabis Act and the Cannabis Regulations (Canada).
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