Organigram C$124M investment from British American Tobacco gets shareholder approval

The investment deal gives BAT total equity of 45% in Organigram.

An overwhelming 96% of Toronto-based Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI) shareholders last week gave their thumbs up to a C$124.6 million investment deal offered by a subsidiary of British American Tobacco last fall, bringing the international tobacco giant that much closer to the cannabis trade.

The shareholder meeting, held Jan. 18, was a rubber stamp on the investment deal, which grew BAT’s financial stake in Organigram. BAT has partnered with the cannabis operator since 2021. The first tranche of the investment closed this week.

In November, Organigram CEO Beena Goldenberg said the new cash influx would be “transformative” for the Canadian company, with the money slated to expand its international footprint and to fund additional cannabis research and development. Specifically, Organigram will create a “strategic investment pool” called Jupiter with which to deploy funds internationally.

In connection with the investment deal, Organigram shareholders also approved the creation of new Class A preferred shares for BAT, which will not be subject to trading on either the Nasdaq or the Toronto Stock Exchange.

The investment deal gives BAT total equity of 45% in Organigram, along with a 30% ownership position in common voting shares.

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