According to a report from businesswire on January 24th, Organigram Holdings Inc. (stock code: OGI, TSX: OGI), a holder of a marijuana production license, announced the completion of the initial delivery of a previously announced 125 million Canadian dollars (approximately 92.47 million US dollars) strategic equity investment ("investment") by BT DE Investments Inc., a wholly-owned subsidiary of British American Tobacco plc ("BAT").
According to the initial delivery, investors purchased 12,893,175 common shares of the company at a price of CAD 3.2203 per share, generating a total fundraising of CAD 41,519,891. The remaining 25,786,350 subscription shares will be delivered at a per share price around August 30, 2024, and February 28, 2025.
Paolo De Luca, Chief Strategy Officer at Organigram, stated, "With shareholders formally approving this transformative transaction and the completion of initial financing, we look forward to achieving our goals of geographic and technological growth, as well as product expansion." He added, "Since announcing this deal on November 6, 2023, we have seen tremendous interest from cannabis companies seeking strategic partnership opportunities and growth capital. With its strong balance sheet and focused Jupiter capital pool, Organigram is uniquely positioned to tackle the ever-emerging opportunities."
According to reports, the majority of the investment will be used by Organigram to create a strategic investment pool called Jupiter. Jupiter will focus on investing in emerging cannabis opportunities, allowing Organigram to apply its industry-leading capabilities to new markets. Management has identified geographic expansion as a strategic priority, and this opportunity enables the company to establish a global presence amidst significant ongoing growth in the legalized recreational cannabis market. Organigram has stated its commitment to maintaining the highest levels of regulatory and product oversight, and will continue to closely monitor the cannabis regulatory landscape.
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