British American Tobacco to Invest $125 Million in Organigram Shares

One of the global giants in the tobacco industry, British American Tobacco (BAT), has announced plans to invest $125 million in shares of Organigram, one of Canada’s largest producers of therapeutic and recreational cannabis, by the end of the year. With this move, the tobacco corporation will increase its controlling stake in Organigram to 45%, up from its current 20%. BAT is currently negotiating the deal with other Organigram shareholders.

It’s worth noting that BAT has been working for several years to diversify its business in response to declining global demand for tobacco products. As part of this strategy, the corporation has acquired several cannabis brands and invested in shares of many other companies in the market. These subsidiary brands are present in many potentially profitable markets around the world. For example, in September 2022, BAT acquired the German company Sanity Group GmbH to gain access to Germany’s gradually growing legal cannabis market.

About Organigram

Organigram is one of the largest producers and distributors of legal recreational and medical cannabis in Canada. The company owns brands such as Edison Cannabis Co., SHRED, Big Bag O’ Buds, and Holy Mountain, among many others. Organigram has consistently generated significant profits: according to experts, over the past 12 months, the company’s brands have made a net profit of $190 million USD. Of this amount, approximately $92.5 million comes from the national recreational market.

According to Organigram representatives, BAT’s investment will be used to expand the company’s production and distribution of its brands in international markets.