As reported by businesswire on January 24, Organigram Holdings Inc. (stock code: OGI, TSX: OGI), a cannabis production license holder, announced that it has completed the previously announced acquisition of British American Tobacco plc, "BAT ”) the first closing of a C$125 million (approximately US$92.47 million) tracking strategic equity investment (the “Investment”) made by BT DE Investments Inc. (the “Investor”), a wholly-owned subsidiary.
According to the first delivery, investors purchased 12,893,175 common shares of the company at a price of CAD 3.2203 per share, with total proceeds raised of CAD 41,519,891. The remaining 25,786,350 subscription shares will be delivered at a price per share on or about August 30, 2024, and February 28, 2025.
"With shareholders formally approving this transformative transaction and closing the first tranche of financing, we look forward to achieving our goals of geographic and technological growth and product expansion," said Paolo De Luca, chief strategy officer at Organigram. He added: "Since our launch in 2023 Since the deal was announced on November 6, we have seen significant interest from a number of cannabis companies seeking strategic partnership opportunities and growth capital. With its strong balance sheet and dedicated Jupiter capital pool, Organigram is well-positioned to respond to emerging opportunities It has unique advantages.”
It is reported that most of the investment will be used by Organigram to create a strategic investment pool called Jupiter. Jupiter will invest 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 positions the Company to establish a global footprint amid continued significant growth in the legalized recreational cannabis market. Organigram said it will maintain the highest level of regulatory and product oversight and will continue to carefully monitor the cannabis regulatory environment.
