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C$124 million investment in Organigram approved

Organigram has closed the first of three tranches of the C$124,559,674 follow-on strategic equity investment by BT DE Investments Inc., a wholly-owned subsidiary of British American Tobacco plc (BAT). Pursuant to the first tranche closing, the investor acquired 12,893,175 common shares of the company at a price of C$3.2203 per share for gross proceeds of C$41,519,891. The remaining 25,786,350 shares subscribed for shall be issued at the Per Share Price in two further equal tranches on or around August 30, 2024, and February 28, 2025.

“With this transformational deal now formally approved by shareholders and with the first tranche funded, we look forward to delivering on our objectives of geographic and technological growth as well as product expansion,” said Paolo De Luca, Chief Strategy Officer of Organigram. “Since we announced this transaction on November 6, 2023, we have seen tremendous interest from cannabis companies looking for strategic partnership opportunities and growth capital. Organigram, with its strong balance sheet and dedicated Jupiter capital pool, is uniquely positioned to take advantage of a growing set of emerging opportunities.”

Accelerating growth ambitions
The majority of the C$124.6 million investment will be used by Organigram to create a strategic investment pool named Jupiter. Jupiter will target investments in emerging cannabis opportunities that will enable Organigram to apply its industry-leading capabilities to new markets. Management has identified that geographic expansion is a strategic priority, and this opportunity presents the company with the capital to lay global foundations as the legal recreational cannabis market continues to see significant growth. Organigram maintains the highest level of regulatory and product stewardship and will continue to monitor the cannabis regulatory environment carefully. As a result, all potential investments will undertake rigorous legal compliance and due diligence processes.

Organigram has 10 years of experience within the Canadian cannabis market and has already made several successful cannabis investments. The acquisition and integration of the Edibles and Infusions Corporation, Laurentian Organics Inc., and more recently, its investment in Phylos Bioscience Inc. has propelled Organigram to a market leadership position in gummies and hash, as well as enabled the company to be the first to launch THCV products in Canada. This proven track record, combined with Organigram’s industry knowledge, can now be applied at a larger scale through Jupiter.

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