Organigram has struck a $221 million investment deal with the company British American Tobacco.
The BAT subsidiary has subscribed for approximately 58.3 million common shares of OGI, which represents a 19.9% equity interest of Organigram.
Chief Executive officer Greg Engel says this has allowed them to create a Centre of Excellence at their facility here in the Hub City, “the Centre of Excellence means we will closely collaborate with BAT, a leading global consumer business, on the development of innovative and differentiated cannabis products, IP and technologies. The significant injection of capital from them also enables us to further invest in our own R&D and product development activities.”
Organigram and BAT have entered into a Product Development Collaboration Agreement. The Centre of Excellence is located at Organigram’s indoor facility in Moncton.
Engel says, ‘The transaction also provides us with significant capital to invest in growth opportunities, including entering the United States and other international markets at the right time and in accordance with applicable laws.”
“This is a tremendous milestone in the evolution of Organigram. It is instrumental in advancing our commitment to offering consumers innovative cannabis products and to furthering our long-term international strategy,” says Engel. “We have been extremely selective about aligning with a strategic partner and, in BAT, we’ve found a leading consumer goods business with sophisticated management, innovative product platforms, an impressive dedication to research and development, deep consumer insights, regulatory expertise and a commitment to responsible stewardship and consumer safety among many other enviable attributes. This collaboration is the culmination of extensive discussions and workshops and in-depth due diligence.”
