$69B Tobacco Giant Supports Cannabis With $91M Investment In Toronto Weed Producer
Portfolio Pulse from Jelena Martinovic
Canadian cannabis company Organigram Holdings Inc. (NASDAQ:OGI) (TSX:OGI) has announced a $91.2 million strategic equity investment from BT DE Investments Inc., a subsidiary of British American Tobacco (BAT) (NYSE:BTI). The investment will be used to create a strategic investment pool, Jupiter, which will target emerging cannabis opportunities. This transaction increases BAT's voting Common Share ownership position to 30% and overall equity interest to 45% in Organigram. The first tranche of the investment is expected to close on January 16, 2024.
November 06, 2023 | 1:35 pm
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British American Tobacco has made a $91.2 million investment in Organigram Holdings Inc. This increases BAT's voting Common Share ownership position to 30% and overall equity interest to 45% in Organigram.
The investment in Organigram allows BAT to expand its presence in the cannabis industry. This strategic move could potentially increase BAT's revenue and profitability, leading to a positive impact on its stock price.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 100
POSITIVE IMPACT
Organigram Holdings Inc. has received a $91.2 million investment from British American Tobacco. This will be used to create a strategic investment pool, Jupiter, to target emerging cannabis opportunities.
The investment from BAT will provide Organigram with the capital to expand into new markets and strengthen its financial position. This could lead to increased investor confidence and a potential rise in the company's stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100