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Under this investment agreement, BAT will acquire a total stake of 45% in Organigram.
An overwhelming 96% of Toronto-based OrganiGram Holdings Inc. (NASDAQ: OGI) (TSX: OGI) shareholders announced last week that the British American Tobacco Co., Ltd. subsidiary offered the C$124.6 million deal last fall. Supported dollar investment transactions and brought international benefits. Big tobacco much closer to the cannabis trade.
The shareholder meeting held on January 18 rubber-stamped the investment agreement, increasing BAT’s stake in OrganiGram. BAT has been partnering with cannabis operators since 2021. The first part of the investment was completed this week.
In November, OrganiGram CEO Beena Goldenberg said the influx of new capital was “transformational” for the Canadian company, saying the money would be used to expand its international footprint and fund additional cannabis research. He said he plans to fund the development. Specifically, OrganiGram will create a “strategic investment pool” called Jupiter to deploy funds internationally.
In connection with this investment transaction, OrganiGram shareholders also approved the creation of new Class A Preferred Shares for BAT that will not be traded on the Nasdaq Stock Exchange or the Toronto Stock Exchange.
The investment agreement gives BAT ownership of 45% of OrganiGram’s total capital and 30% of common voting shares.
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