Organigram Holdings Inc announced a C$221 million (US$175 million) investment from British American Tobacco (BAT) which represents a 19.9% share of the company.
Organigram Inc., a leading licensed cannabis produce, and BAT, the world’s largest tobacco company will establish a “center of excellence” focusing on developing the next generation of cannabis products with an initial focus on CBD. The facility will be located at Organigram’s indoor facility in Moncton, New Brunswick, which holds the Health Canada licenses required to conduct research and development activities with cannabis products. Both companies will contribute scientists, researchers, and product developers.
“Today’s announcement underscores BAT’s commitment to accelerating our transformation and building ‘A Better Tomorrow’,” said Dr. David O’Reilly, director, scientific research at BAT, commented. “Our multi-category, consumer-centric approach, which is key to our transformation, aims to provide choice and meet the evolving needs of adult consumers. Choice that provides reduced risk alternatives to combustible cigarettes, as well as going beyond tobacco and nicotine into new and exciting areas of product innovation.”
“This is a tremendous milestone in the evolution of Organigram.,” said Greg Engel, chief executive officer of Organigram. “We have been extremely selective about aligning with a strategic partner, and in BAT we’ve found a leading consumer goods business with sophisticated management, innovative product platforms, an impressive dedication to research and development, deep consumer insights, regulatory expertise and a commitment to responsible stewardship and consumer safety among many other enviable attributes.