Cannabis producer Organigram closes final tranche of CA$124.6M funding

Canadian cannabis producer Organigram Holdings closed on the final of three tranches of an overall investment of 124.6 million Canadian dollars (roughly $87 million) from a wholly owned subsidiary of British American Tobacco.The British American Tobacco subsidiary, BT DE Investments, acquired about 7.6 million common shares and 5.3 million Class A preferred shares at CA$3.2203 for gross proceeds of CA$41.5 million, according to a news release.

ADVERTISEMENT The funds are being used to finance a strategic investment pool called Jupiter.The Jupiter pool is designed to accelerate Organigram’s international growth both overseas and in the United States.

Now that the Jupiter fund is fully funded, Organigram has an additional CA$57.8 million to invest, according to Chief Strategy Officer Paolo De Luca.The New Brunswick-headquartered producer already has completed investments of CA$21 million in German cannabis operator Sanity Group and CA$2.7 million in North Carolina-based cannabinoid manufacturer Open Book Extracts.

ADVERTISEMENT “Opportunities in the space have only improved with cannabis valuations at historically weaker levels and many cannabis and hemp companies unable to access cost-efficient growth capital despite fundamentally strong businesses,” De Luca said in a statement.“We look forward to continuing to roll out our international and differentiated product strategy supported by the Jupiter platform.” Organigram shares trade as OGI on the Nasdaq and Toronto Stock Exchange.

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