Canadian cannabis producer Organigram Holdings has wrapped up the last tranche of a CA$124.6 million ($87 million) investment from British American Tobacco’s subsidiary, BT DE Investments. This marks a major financial boost for Organigram as it looks to expand internationally through its strategic Jupiter investment fund.
British American Tobacco’s Deepening Stake in Organigram
This latest tranche saw BT DE Investments acquire 7.6 million common shares and 5.3 million Class A preferred shares at a price of CA$3.2203 per share, injecting CA$41.5 million into Organigram. The investment is part of a larger funding deal aimed at fueling long-term cannabis innovation and global expansion.
British American Tobacco (BAT) first took a stake in Organigram in 2021 and has been steadily increasing its investment. The move signals the tobacco giant’s confidence in Organigram’s market position and long-term potential, especially in cannabis-based consumer products.
Jupiter Fund: Organigram’s Key to U.S. and Global Expansion
With the Jupiter fund now fully funded, Organigram has an extra CA$57.8 million available for strategic investments. The company has already deployed CA$21 million into Germany-based Sanity Group, a medical cannabis operator, and CA$2.7 million into Open Book Extracts, a cannabinoid manufacturer in North Carolina.
The Jupiter initiative is structured to:
- Accelerate Organigram’s entry into emerging cannabis markets, especially in Europe and the U.S.
- Provide funding to promising cannabis and hemp businesses that struggle to access cost-efficient capital.
- Strengthen Organigram’s product differentiation strategy in international markets.
De Luca: “Now Is the Time to Invest”
Paolo De Luca, Organigram’s Chief Strategy Officer, emphasized that the current cannabis market presents a prime opportunity for investments.
“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 stated.
This suggests Organigram sees the current downturn in cannabis stock prices as a chance to acquire valuable assets at a discount, positioning itself for long-term success.
Organigram’s Market Position and Stock Performance
Organigram, headquartered in New Brunswick, Canada, remains one of the few cannabis companies with strong international ambitions. Its shares are traded on both the Nasdaq and the Toronto Stock Exchange (OGI).
With its new capital reserves and the Jupiter fund at full strength, Organigram is poised to execute more strategic acquisitions and partnerships. The next steps could involve additional U.S. investments, pending regulatory clarity, and expanding its footprint in the European medical cannabis market.