The British American Tobacco Group had acquired 19.9% equity in leading Canadian cannabis producer Organigram Inc., the company announced in a statement.
- The investment is valued at 126 million pounds or C$3.79 per share, based on the five-day volume average price of Organigram Holdings Inc. shares on the Toronto Stock Exchange.
- The agreement entails that a BAT subsidiary will become the largest shareholder with the ability to appoint two directors to Omingram’s board. BAT nominee Jeyan Heper was added to the board at closing, with another to be added in the near term.
- BAT will gain access to research and development technologies, product innovation, and cannabis expertise to complement its plant-based expertise and development capabilities.
- The deal also includes the establishment of a Centre of Excellence located in Organigram’s indoor facility in New Brunswick, Canada. This will house scientists, researchers, and product developers shared by both parties.
- BAT and Organigram will grant each other a license to certain intellectual properties to enable the development of parties. They will both have the ability to commercialize products developed through collaboration.