On August 30, 2024, Organigram closed the second of three tranches of the previously announced C$124,559,674 investment by BT DE Investments, a wholly owned subsidiary of British American Tobacco ("BAT").
"With two tranches of the Jupiter pool now funded, combined with our strong balance sheet and targeted investment strategy, Organigram is well on its way to executing on its ambitious growth plan focusing on international, technological, and product expansion," said Paolo De Luca, Chief Strategy Officer of Organigram. "Our inaugural Jupiter investment in Open Book Extracts marked our second investment in the U.S. market, and our first international investment in Sanity Group represents a significant first step in our ambitions to grow our footprint in the fast-growing German market," he concluded.
As previously announced, most of the Investment is being used by Organigram to fund a strategic investment pool, named "Jupiter". The Jupiter Pool was designed to accelerate Organigram's ambitions for international growth and to target investments both overseas and in the United States, with rigorous legal compliance processes. Following the closing of the first tranche on January 23, 2024 (the "First Tranche Closing"), the Company has already made two important investments from the Jupiter Pool.
The first investment of USD $2 million was made in Open Book Extracts ("OBX"), a North Carolina-based company that is a leading ingredient provider, product formulator and manufacturer of hemp derived extracts and products. OBX has a scalable platform, differentiated products, formulation expertise, tremendous access to the U.S. market and a leadership position in the fast-growing hemp derivatives category.
The second investment of €14 million (~ C$21 million), was made in Sanity Group GmbH ("Sanity"), a market leader in the fast-growing German medical market. This investment marks Organigram's first strategic investment aimed at expanding its presence in Europe. Sanity has quickly established itself as a leader in the German cannabis market where it maintains a robust distribution network with over 2,000 pharmacies working with approximately 5,000 physicians in Germany. Sanity currently holds an estimated market share position of over 10% in Germany and has experienced an over 100% run rate revenue growth from the pre-April 1st period to the date hereof. Sanity is also participating in a Swiss recreational cannabis pilot program in the Canton of Basel-Landschaft, with two stores operational and a plan to expand its retail footprint in Switzerland. Later this summer, Sanity is expected to invest in proprietary distribution channels providing it with what it believes will be a competitive advantage that capitalizes on new medical consumers entering the market.
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