Tag: Organigram

Organigram Closes Second BAT Tranche

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Organigram Holdings closed the second of three tranches of a CAD124.56 million ($92.2 million) equity investment by British American Tobacco’s BT DE Investments subsidiary.
Pursuant to the second tranche closing, the investor acquired 4,429,740 common shares and 8,463,435 Class A preferred shares at a price of CAD3.22 per share for gross proceeds of $30.82 million. The remaining 12,893,175 shares subscribed for are due to be issued at the per share price in the final tranche on or around Feb. 28, 2025.
“With two tranches of the Jupiter pool now funded, combined with our strong balance sheet and targeted investment strategy, Organigram is well on its way to executing on its ambitious growth plan focusing on international, technological and product expansion,” said Organigram CEP Paolo De Luca in a statement.
“Our inaugural Jupiter investment in Open Book Extracts marked our second investment in the U.S. market, and our first international investment in Sanity Group represents a significant first step in our ambitions to grow our footprint in the fast-growing German market,” he added.
September 5, 2024
Organigram Looking for New CFO

Image: fizkes
Derrick West will transition away from his role as chief financial officer at Organigram Holdings to focus on recovery following surgery later this month.
Paolo De Luca, current chief strategy officer, has been appointed interim CFO while the company completes a search for a new permanent CFO. De Luca previously served as the company’s CFO between 2017 and 2020.
“Derrick has left a legacy of stabilizing our financial processes along with the implementation of our ERP and has supported the company through a period of high growth including the acquisitions of our Winnipeg and Lac-Supérieur facilities,” said Organigram CEO Beena Goldenberg in a statement. “We are grateful for his contributions during his time on the board beginning in 2017 and since becoming CFO in 2020 and we wish him well.”
Organigram Holdings is the parent company of Organigram, a licensed producer of cannabis, cannabis-derived products and cannabis infused edibles in Canada.
Recently British American Tobacco increased its equity position in Organigram from 19 percent to 45 percent.
November 13, 2023
BAT Ups Investment in Organigram

Credit: Roxxy Photos
Organigram Holdings Inc. has extended its relationship with British American Tobacco. The move boosts the Canadian cannabis producer’s financial strength and positioning it to expand globally.
Organigram said in a statement that BAT is investing a further $90.5 million in the business, building on an initial $160 million injection back in 2021.
Organigram said the investment will allow it to extend its footprint beyond Canada, and also strengthen its financial position for long-term, sustainable growth, according to media reports.
“This investment bolsters an already strong balance sheet and solidifies our position as a leading cannabis company,” said Beena Goldenberg, chief executive of Organigram.
The firm said the deal enables it to invest in growing the topline of its core business, while optimizing operations to deliver on cost-saving efficiencies, thus accelerating earnings growth.
Organigram will use the majority of the investment 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, it said.
November 8, 2023
BAT Strengthens Organigram Partnership

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BAT is investing some £74 million ($91.68 million) in its partnership with Organigram and increasing its equity position from 19 percent to 45 percent.
This investment is intended to deepen the strategic relationship between Organigram Holdings 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 noncombustible cannabis products.
In a statement, BAT said it has been 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,” BAT wrote. “These factors give BAT confidence that the new investment can position Organigram to capitalize 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. According to BAT, the investment remains subject to customary conditions, including necessary approvals by the shareholders of Organigram.
“This investment bolsters an already strong balance sheet and solidifies our position as a leading cannabis company. In addition, this deepens the strategic partnership between Organigram and BAT, and we look forward to continuing to leverage BAT’s global capabilities and scientific expertise,” said Organigram CEO Beena Goldenberg in a statement.
November 6, 2023
Organigram buys The Edibles & Infusions Corp

Photo: Erin Stone from Pixabay
Organigram Holdings has acquired The Edibles & Infusions Corp. (EIC) in a CAD35 million ($27.88 million) stock deal, reports Reuters.
EIC specializes in pot edibles, like gummy bears, brownies and drinks, and have been the biggest beneficiaries of increased demand for cannabis products during coronavirus lockdowns.

Edible products remain an important product category to Organigram, and EIC represents an ideal partner with which to expand our market presence in this category as well as other derivative cannabis categories.
Greg Engel, CEO, Organigram
“Edible products remain an important product category to Organigram, and EIC represents an ideal partner with which to expand our market presence in this category as well as other derivative cannabis categories,” Organigram Chief Executive Greg Engel said.
In March, British American Tobacco announced it would buy a nearly 20 percent stake in Organigram for about £126 million ($174.30 million) as it looks to diversify beyond its main tobacco business.
Organigram said it currently expects first sales of EIC-manufactured soft chews in the fourth quarter of fiscal 2021.
The Toronto Stock Exchange has approved the EIC deal, according to Organigram.
April 7, 2021
BAT and Organigram Partner on Cannabis

Photo: Tobacco Reporter archive
The BAT Group (BAT) has signed a strategic collaboration agreement with Organigram, a wholly owned subsidiary of publicly traded Organigram Holdings, focused on research and product development activities of next-generation adult cannabis products with an initial focus on cannabidiol (CBD).
This agreement augments ongoing BAT activities to expand its portfolio “beyond nicotine” and follows the pilot launch of Vuse CBD Zone in Manchester, U.K., earlier this year.
Through the collaboration, BAT will gain access to cutting-edge R&D technologies, product innovation and cannabis expertise, complementing BAT’s extensive plant-based expertise and development capabilities.
Organigram 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.

We believe this collaboration has significant potential to enhance our activities.

David O’Reilly, director of scientific research, BAT
“Today’s announcement underscores our commitment to accelerating our transformation and building ‘A Better Tomorrow,’” said David O’Reilly, director of scientific research at BAT, in a statement. “Our multi-category, consumer-centric approach, which is key to our transformation, aims to provide choice and meet the evolving needs of adult consumers. This choice provides reduced-risk alternatives to combustible cigarettes as well as going beyond tobacco and nicotine into new and exciting areas of product innovation.
“We believe this collaboration has significant potential to enhance our activities, allowing us to combine our world-class expertise while enabling scientists from both BAT and Organigram to work closely together and share information real-time. We know that in R&D, this is how you make real breakthroughs and accelerate progress.
“We have been impressed by the strong management team and culture at Organigram. This collaboration aligns with our long-term strategy and will enable us to work with Organigram at an R&D level as well as contributing to their wider operations.”

We have been extremely selective about aligning with a strategic partner.

Greg Engel, CEO, Organigram
“This is a tremendous milestone in the evolution of Organigram,” said Greg Engel, CEO of Organigram, in a statement. “It is instrumental in advancing our commitment to offering consumers innovative cannabis products and to furthering our long-term international strategy. We have been extremely selective about aligning with a strategic partner, and in BAT, we’ve found a leading consumer goods business with innovative product platforms, an impressive dedication to research and development, deep consumer insights, regulatory expertise and a commitment to responsible stewardship and consumer safety.”
March 11, 2021