Author: Margaret Jackson

Canadian cannabis producer Organigram Holdings closed on the final of three tranches of an overall investment of 124.6 million Canadian dollars (roughly $87 million) from a wholly owned subsidiary of British American Tobacco.

The British American Tobacco subsidiary, BT DE Investments, acquired about 7.6 million common shares and 5.3 million Class A preferred shares at CA$3.2203 for gross proceeds of CA$41.5 million, according to a news release.

The funds are being used to finance a strategic investment pool called Jupiter.

The Jupiter pool is designed to accelerate Organigram’s international growth both overseas and in the United States.

Now that the Jupiter fund is fully funded, Organigram has an additional CA$57.8 million to invest, according to Chief Strategy Officer Paolo De Luca.

The New Brunswick-headquartered producer already has completed investments of CA$21 million in German cannabis operator Sanity Group and CA$2.7 million in North Carolina-based cannabinoid manufacturer Open Book Extracts.

“Opportunities in the space have only improved with cannabis valuations at historically weaker levels and many cannabis and hemp companies unable to access cost-efficient growth capital despite fundamentally strong businesses,” De Luca said in a statement.

“We look forward to continuing to roll out our international and differentiated product strategy supported by the Jupiter platform.”

Organigram shares trade as OGI on the Nasdaq and Toronto Stock Exchange.

Canadian cannabis company MediPharm Labs Corp. plans to sell its facility in Hope, British Columbia, to Rubicon Organics for $4.5 million in cash.

The transaction, expected to close in the second quarter, includes a building, land and some equipment, according to a Monday news release.

The deal comes on the heels of MediPharm terminating a $5.5 million sale of its ABcann Medicinals subsidiary in February because the buyer, Ontario-based Kensana Health, did not meet some of the terms and conditions within the specified timeline.

As for the Hope facility, MediPharm said in the release that it ceased operations there last year to focus on its acquisition of Vivo Cannabis, an Ontario-based marijuana producer.

The buyer, Vancouver, British Columbia-based Rubicon Organics, is a producer of organic cannabis.

The British Columbia facility sale allows MediPharm to monetize its noncore assets to invest in its growth, the release noted.

“Securing $4.5 million through the divestment of non-core assets in this transaction will further reinforce MediPharm’s ability to capitalize on strategic M&A synergies, streamline operations and maximize value for both shareholders and valued partners,” CEO David Pidduck said in a statement.

“The sale of the Hope facility strengthens not only our cash positions but also our 2025 focus – investing in our international and medical growth strategies as a global leader in pharmaceutical cannabinoid solutions.”

MediPharm’s shares trade as LABS on the Toronto Stock Exchange.