Organigram Receives New Investment From British American Tobacco, Eyes Expansion
November 7, 2023Toronto-based Organigram has received a new C$124.6 million ($91.3 million) investment from British American Tobacco (BAT) as it eyes expansion opportunities. The company plans to use about two-thirds of the investment to create “Jupiter,” billed as a strategic investment pool designed to expand Organigram’s geographic footprint and capitalize on emerging growth opportunities.
Organigram, which boasts a number-two market share in Canada, is aiming to expand beyond its home country looking ahead. “The opportunity set within the cannabis space has grown significantly since our initial collaboration with BAT in March 2021 and the category continues to expand globally,” said chief strategy officer Paolo de Luca. “The competitive nature of the industry also means that the opportunity for investments is ample for companies with strong balance sheets, industry experience, and a proven track record of M&A success.”
Organigram recently made its first U.S. investment in Phylos Bioscience Inc., aimed at commercializing the THCV cannabinoid. The company posted recreational net revenue of C$93 million ($68m) for the nine months through May, an increase of 8% compared with a year earlier, led by its Shred brand.—Daniel Marsteller
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