Organigram Holdings Gets C$221 Million Investment From British American Tobacco
March 11 2021 - 6:51AM
Dow Jones News
By Chris Wack
Organigram Holdings Inc. said Thursday it received a C$221
million ($175.1 million) strategic investment from a wholly owned
subsidiary of British American Tobacco Plc.
The BAT subsidiary has subscribed for 58.3 million common shares
of Organigram, which represents a 19.9% equity interest worth C$221
million at a price per share of C$3.792.
Organigram Inc. and BAT also have entered into a product
development collaboration agreement which will focus on developing
the next generation of cannabis products with an initial focus on
CBD. The Center of Excellence 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, and will be
governed and supervised by a steering committee consisting of an
equal number of senior members from both companies.
Under the terms of the agreement, both Organigram and BAT have
access to certain of each other's intellectual property and have
the right to independently, globally commercialize the products,
technologies and IP created by the Center of Excellence.
Organigram shares were up 22% to $3.54 in premarket trading.
Write to Chris Wack at chris.wack@wsj.com
(END) Dow Jones Newswires
March 11, 2021 06:36 ET (11:36 GMT)
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