BAT continues to grow its cannabis investments with its latest investment in Germany’s leading cannabis company, Sanity Group. Photo credit: Cannabis Tours, Creative Commons.
British American Tobacco (BAT) made another investment in cannabis by acquiring a non-controlling minority stake in one of Germany’s leading cannabis companies, Sanity Group GmbH.
Last year BAT invested about US$175 million to take a 19.9% stake in licensed cannabis producer Organigram Holdings, and put in another US$5.1 million in Organigram this year. Last year the company also invested in Trait Biosciences, which provides technology that makes CBD water-soluble.
Berlin-based Sanity secured US$37.6 million in the BAT-led Series B funding round, Europe's largest cannabis investment round to date. The round brings the total raised by the company to more than US$100 million. Bloomberg reports that nearly half of the amount will go toward strengthening Sanity’s medical business, while the company will spend the rest on preparing for the potential legalization of recreational marijuana in Germany.
"This funding is an important milestone for us and a strong signal towards the future of cannabis in Germany and Europe,” said Finn Age Hänsel, Sanity founder and c.e.o. “I am grateful for the belief shown by both new and existing investors. Our goal is to leverage the full potential of the cannabis plant and to explore and harness the different cannabinoids – with the new capital, we will be able to accelerate our medical and consumer business units whilst preparing accordingly for cannabis legalization in Germany.”
Kingsley Wheaton, BAT’s chief growth officer, said, “Investing in Sanity Group is another example of BAT’s ongoing work to explore numerous areas beyond nicotine, positioning BAT for future portfolio growth across a range of categories and geographies. We continue to transform our business, through better understanding of our current and future consumers, as part of our A Better Tomorrow purpose.”
Sanity Group was founded in 2018 and has around 120 employees in the medical, consumer health and science sectors now. The company aims to improve quality of life through the use of cannabinoids. The focus is on pharmaceuticals, medical products, and consumer goods. Sanity Group's existing investors include music producer Will.I.Am (Black Eyed Peas), Hollywood actress Alyssa Milano, manager Scooter Braun, Swiss VC Redalpine, rapper Snoop Dog’s Casa Verde Capital, HV Capital, Calyx, TQ Ventures, Atlantic Food Labs, Cherry Ventures, Bitburger Ventures, SevenVentures, GMPVC, Navy Capital and SOJE Capital.