British American Tobacco is increasing its investment in Canadian cannabis producer Organigram. The London-based tobacco company said it would be investing $91.9 million between January 2024 and January 2025 and increasing its equity position from about 19% to 45%.
The investment will enhance product development collaboration, BAT said, which started in March 2021 with Organigram to leverage the expertise of both companies to develop the next generation of non-combustible cannabis products. Most of the investment will be allocated for Organigram to establish a strategic investment pool, intended to be applied for emerging opportunities within the cannabis space, BAT said, and to support geographic, technological and product expansion.
BAT has made a series of minority investments in the cannabis space since March 2021.
“BAT continues to explore future opportunities by partnering with and learning from its cannabis investment companies, which includes Organigram,” the company said.
Toronto-based Organigram is Canadian licensed cannabis producer, focused on producing high-quality, indoor-grown cannabis for adult recreational consumers in all provinces. Adult-use recreational and medical cannabis products are legally available in Canada.
BAT owns brands including Vuse vapor products, Velo modern oral nicotine products and Pall Mall, Lucky Strike, Camel, Natural American Spirit and Newport cigarettes. Reynolds American is among its subsidiaries.
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