Organigram buys way into US hemp-derived THC market

Organigram Global, one of Canada’s largest marijuana producers, is entering the growing U.S.hemp-derived THC beverage market through a multimillion-dollar acquisition of Collective Project, a THC drink manufacturer based in Hamilton, Ontario.

Under the agreement, New Brunswick-headquartered Organigram acquired all issued and outstanding shares of Collective Project for an upfront payment of 6.2 million Canadian dollars ($4.3 million) plus potential earnouts, according to a Tuesday news release. ADVERTISEMENT The earnouts are based on various revenue targets that could bring the total price to roughly CA$30 million.

The total value of the deal, if benchmarks are hit, would be among the highest-priced transactions in the industry in the past few years, given that mergers and acquisitions have been hampered by a $3 billion debt wave that matures in 2026.Collective Project, launched in 2013 by Collective Arts, specializes in marijuana and hemp-derived infused sparkling juices, teas and sodas that feature art design elements.

According to the release, Collective Project launched sales in the United States in late 2024, with the drinks currently available in 37 markets, including Florida, Georgia, Indiana, Kentucky, Minnesota, North Carolina, Ohio, South Carolina, Tennessee and Texas.In Canada, the products are currently available in British Columbia, Newfoundland and Nova Scotia, Ontario and Saskatchewan.

“The acquisition of Collective Project marks yet another strategic milestone towards Organigram’s global leadership ambitions,” Organigram CEO Beena Goldenberg said in a statement.“Not only does this acquisition represent our first commercial entry into the fast-growing hemp-derived THC beverage market in the U.S., it also fast tracks our entry into the cannabis beverage category in Canada, a category that we believe is on the cusp of growth at home.” ADVERTISEMENT ...