Organigram Global and Sanity Group jointly announced the official closing of Organigram’s acquisition of the Germany-based cannabis company that was originally announced in February. Combining cash and shares as part of its international expansion strategy, the deal is valued at €107.3 million. The transaction was supported by €40.3 million in new financing from British American Tobacco and additional credit facilities, highlighting BAT’s continued backing of Organigram’s growth initiatives. The deal marks the final deployment of funds from the Jupiter strategic investment pool and strengthens Organigram’s position in the European cannabis market.
Tag: cannabis
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Charlotte’s Web Announces Financials, Deal with BAT
Charlotte’s Web Holdings, Inc. announced a transaction with BT DE Investments yesterday (March 30), a subsidiary of British American Tobacco, to convert a $54.2 million convertible debenture plus accrued interest into equity at $0.68 per share and complete a concurrent $10 million private placement, resulting in the issuance of about 110 million shares and a total equity commitment of roughly $75 million. The deal would eliminate about $65 million in debt, stop future interest accrual, and leave the company with no long-term debt, subject to shareholder and TSX approval at a meeting planned for May 28, 2026.
Today (March 31), the company released its 2025 financials and said it advanced product innovation, in-house manufacturing, and healthcare channel development while holding annual revenue broadly steady at $49.9 million. Fourth-quarter revenue rose 4.7% year over year to $13.3 million, supported by new Brightside low-dose hemp THC gummies, sleep products, functional mushrooms, and minor cannabinoids, though gross margin was affected by a one-time inventory charge tied to legacy gummies. Full-year gross margin improved to 43.5% and SG&A fell 21% to $42 million following cost reductions, narrowing the operating loss to $20.3 million from $32 million in 2024. The company ended the year with $8 million in cash and reported progress toward internalizing gummy production, achieving a clean NSF 455-2 cGMP audit, and establishing a Scientific Advisory Board to support its expanding medical practitioner channel.
Charlotte’s Web said the strengthened balance sheet will support its planned participation in a Centers for Medicare & Medicaid Innovation pilot enabling access to hemp-derived CBD products for Medicare beneficiaries and ongoing clinical development by DeFloria, its joint venture with BAT and Ajna BioSciences, which is preparing to begin Phase 2 trials of a botanical CBD-based treatment candidate in mid-2026.
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Smoore, Distributors Want Antitrust Claims Dismissed
Vape manufacturers and distributors moved to dismiss consumer antitrust claims in consolidated multidistrict litigation pending in the U.S. District Court for the Northern District of California. In motions filed Feb. 20, Shenzhen Smoore Technology Co. Ltd. and Smoore International Holdings, along with distributor defendants 3Win Corp., Jupiter Research LLC, Canna Brand Solutions, and Greenlane Holdings Inc., argued that plaintiffs lack standing and have not plausibly alleged a price-fixing conspiracy. The case involves closed cannabis oil vaporization systems, with plaintiffs alleging agreements to set a price floor and restrict competing products.
Defendants contend they sell empty vape hardware, not cannabis-filled products, which they describe as a separate market, and argue consumers are too remote from the hardware market to bring antitrust claims. They further assert the complaint lacks specific pricing, market share, and foreclosure allegations, and maintain that revived claims under the Cartwright Act seek relief tied to products that remain illegal under federal law. The court has not yet ruled.
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BAT Funds $48M for Organigram’s Sanity Group Acquisition
Organigram Global Inc. revealed that it has entered into a subscription agreement with BT DE Investments Inc. – a wholly-owned subsidiary of British American Tobacco – to fund its previously announced acquisition of Sanity Group GmbH. Under the agreement, BAT will subscribe for 14,027,074 common shares at C$3 ($2.19) each and exercise top-up rights for 9,897,356 additional shares at C$2.335854 ($1.71), generating total gross proceeds of C$65.2 million ($47.6 million).
The proceeds, along with cash on hand and funds from a previously arranged up to $60 million senior secured credit facility, will be used to finance the cash portion of the acquisition, transaction costs, and general working capital. To ensure BAT does not exceed a 30% ownership threshold post-issuance, the company will issue non-voting Class A convertible preferred shares if needed, which can be converted into common shares under specified conditions. Shareholder approval for the acquisition and private placement will be sought at Organigram’s annual and special meeting on March 30, in compliance with TSX rules and related-party transaction regulations. The Board unanimously approved the deals, with BAT’s nominees abstaining from voting.
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Boveda Changes Name to Vivi in Cannabis Sector
Boveda announced that its two-way humidity controls designed specifically for the cannabis market will now be branded as Vivi, though materials, construction, and performance remain unchanged. The new brand will anchor a broader cure-to-storage system for cannabis, and Boveda said a dedicated Vivi team will support customers as the company expands its long-term presence in the industry.
The company—which caters to “moisture sensitive” niches such as cigars, guitars, and medical devices—said the move is designed to better serve cultivators, homegrowers, and consumers with branding tailored specifically to cannabis, while keeping the same humidity-control technology that has been used in the sector since 2007.
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Employee-Owned Transition for U.S. Cannabis Operator
Chicago Atlantic announced it acted as joint lead arranger and administrative agent on a senior secured credit facility for S1 Enterprises—the parent company of vertically integrated cannabis operator Illicit—with operations in Missouri and New Jersey. Proceeds will finance the sale of 100% of the company’s equity to an Employee Stock Ownership Plan, making Illicit a 100% employee-owned S Corporation and creating a long-term ownership pathway for more than 500 employees. The ESOP structure is expected to enhance cash flow through tax-exempt status and support continued growth, investment, and employee benefits across the company’s operations.
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N.J. Tightens Cannabis Rules, Allows Workers to Unionize
New Jersey is tightening oversight across its cannabis and hemp markets, with new laws reshaping labor rules and retail competition. Assembly Bill No. 4182, now enacted, establishes a comprehensive labor framework for cannabis workers and other private-sector employees not covered by the National Labor Relations Act. The law places organizing and collective bargaining under the Division of Private Employment Dispute Settlement, grants it broad enforcement powers, and authorizes penalties of up to $10,000 per violation, or $20,000 in serious cases. Cannabis workers are explicitly guaranteed rights to organize, bargain collectively, and engage in protected activity, while employers face strict limits on retaliation, surveillance, and anti-union practices.
At the product and retail level, New Jersey has also moved to rein in intoxicating hemp under S-4509/A-6295, creating a new regulatory scheme aligned with federal law and repealing earlier permissive rules. The legislation phases out sales of intoxicating hemp products at gas stations, convenience stores, smoke shops, and liquor stores by November 13, with key restrictions beginning in April. Licensed cannabis dispensaries have welcomed the move, arguing it curbs unfair competition from loosely regulated outlets, while the law preserves protections for licensed hemp farmers operating under the state’s Hemp Farming Act.
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Nabis Acquires Major Share of Calif. Cannabis Market
Nabis, the “largest licensed cannabis wholesale platform in the U.S.,” acquired select assets of California distributor Humble Cannabis Solutions, expanding its distribution footprint across Northern and Southern California as the industry adjusts to federal cannabis rescheduling from Schedule I to Schedule III. The deal adds roughly $13 million in assets and $20 million in gross sales, strengthening Nabis’ technology-driven infrastructure to support scaling demand.
The transaction includes a $4 million strategic capital investment from Humble Cannabis Solutions, $4 million in distribution assets to be integrated into Nabis’ California operations, and $5 million in debt financing to support the company’s growth.
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Cannabis Use Growing, Intertwined with Nicotine
A new study published in Tobacco Induced Diseases finds that cannabis use—both vaping and smoking—has increased over time, with more young adults initiating use than quitting, and high levels of co-use with nicotine and tobacco products. Researchers from Columbia University Mailman School of Public Health report that simultaneous cannabis and e-cigarette use is especially common among young adults who vape nicotine, with similar rates observed across genders. The findings highlight that cannabis consumption is not only growing but increasingly intertwined with nicotine use.
Analyzing data from the VapeScan longitudinal study of 372 adults in the New York City area between 2021 and 2024, researchers found cannabis users often consume multiple product types, including vapes, edibles, smoked products, CBD, and topicals. By the second year of follow-up, nearly 60% of participants reported cannabis use, with cannabis vaping and smoking both rising. Notably, 21% of participants were new cannabis vape or smoke users over the study period, while only 6% of earlier users quit, underscoring a net increase in use.
The authors say the expanding variety of cannabis products, rising frequency of use, and widespread cannabis–nicotine co-use pose growing public health and regulatory challenges.
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Court Creates Split on Cannabis Landscape
A U.S. appeals court ruling last Friday (January 2) added fresh legal uncertainty to the regulated cannabis landscape, with potential implications for adjacent nicotine and tobacco industries. The Ninth Circuit Court of Appeals held that the dormant commerce clause does not apply to state-legal cannabis markets because marijuana remains illegal under federal law. The decision allows states within the Ninth Circuit to maintain residency-based licensing and other local protectionist measures, and directly conflicts with earlier rulings from the First Circuit (2022) and Second Circuit (2025), which extended constitutional commerce protections to legal cannabis despite federal prohibition—creating a clear circuit split.
The case challenged residency requirements for retail marijuana licenses in Washington State and Sacramento, California, brought by an out-of-state applicant who argued the rules unfairly favored locals. Writing for the court, Judge Daniel A. Bress said federal courts are not required to “inaugurate free trade” in a market Congress has deemed illegal under the Controlled Substances Act. While the ruling strengthens state and local control—often tied to social equity frameworks—it increases regulatory fragmentation across the U.S., underscoring the uneven legal footing of cannabis compared with federally lawful tobacco and nicotine products and raising the likelihood of eventual U.S. Supreme Court review.