British American Tobacco (BAT), a prominent multinational tobacco company, has made a significant move by escalating its investment in Organigram Holdings Inc., a leading Canadian cannabis producer. The company has further deepened its partnership with Organigram by investing an additional CA$124.6 million (US$92.5 million), marking a considerable growth in its financial commitment to the cannabis industry. This latest strategic investment builds on BAT’s previous investments of CA$220 million (US$170 million) in 2021 and an additional CA$6.35 million (US$5.1 million) in 2022. As a result of this considerable injection of funds, BAT now controls a substantial 30% voting common share ownership, along with a noteworthy 45% overall equity interest in Organigram. This significant investment by BAT is indicative of the burgeoning confidence in the exponential potential of the cannabis industry and its ability to deliver substantial returns on investment. BAT, an authoritative figure in the global tobacco market, has identified the changing consumer preferences and the proliferating demand for cannabis products. By strategically investing in Organigram, BAT is effectively positioning itself to leverage this burgeoning market, thereby gaining a significant competitive edge in the cannabis industry that is projected to experience remarkable growth in the coming years. Organigram has outlined a strategic plan for the utilization of the lion’s share of the latest CA$124.6 million investment. The company aims to establish a strategic investment pool, dubbed “Jupiter”, which is geared towards the identification and investment in promising cannabis-focused enterprises and innovative technologies. The residual funds will be allocated for general corporate purposes, ensuring the smooth operation and growth of the company. The Jupiter investment pool will play a pivotal role in expanding Organigram’s portfolio, which will consequently reinforce its foothold in the competitive cannabis industry. Through targeted investments in potential high-growth companies and adoption of advanced technologies, Organigram aims to stay at the forefront of industry innovation and market trends. BAT’s continued financial commitment to Organigram highlights the tobacco giant’s unwavering dedication to the cannabis industry and its staunch belief in Organigram’s potential for exponential growth and success. The partnership between these two industry leaders is poised to reap substantial benefits for both parties. BAT, with its extensive global reach and unmatched expertise in the tobacco industry, can assist Organigram in expanding its international footprint and diversifying its product offerings. Simultaneously, Organigram’s deep-rooted expertise in the cannabis industry will provide BAT with unique insights and understanding of this rapidly evolving and profitable market, thereby aiding in its strategic decision-making and investment planning.

British American Tobacco (BAT) has increased its investment in Organigram Holdings Inc., a leading Canadian cannabis producer, by CA$124.6 million (US$92.5 million), marking a considerable growth in its financial commitment to the cannabis industry ¹²³. This latest strategic investment builds on BAT’s previous investments of CA$220 million (US$170 million) in 2021 and an additional CA$6.35 million (US$5.1 million) in 2022 ¹²³. As a result of this considerable injection of funds, BAT now controls a substantial 30% voting common share ownership, along with a noteworthy 45% overall equity interest in Organigram ¹²³. Organigram has outlined a strategic plan for the utilization of the lion’s share of the latest CA$124.6 million investment. The company aims to establish a strategic investment pool, dubbed “Jupiter”, which is geared towards the identification and investment in promising cannabis-focused enterprises and innovative technologies. The residual funds will be allocated for general corporate purposes, ensuring the smooth operation and growth of the company ³. This significant investment by BAT is indicative of the burgeoning confidence in the exponential potential of the cannabis industry and its ability to deliver substantial returns on investment ¹. By strategically investing in Organigram, BAT is effectively positioning itself to leverage this burgeoning market, thereby gaining a significant competitive edge in the cannabis industry that is projected to experience remarkable growth in the coming years ¹.

From Microsoft Start Partners

• Organigram’s stock soars as British American Tobacco invests $91.3 million

Learn more:

1. msn.com2. mjbizdaily.com3. benzinga.com4. bat.com5. bloomberg.com6. cnbc.com