BAT Unit Acquires 19.9% Equity Investment In Organigram - Quick Facts

(RTTNews) - BAT Group has signed a strategic collaboration agreement with Organigram Inc., a subsidiary of Organigram Holdings. Organigram Inc. is a licensed producer of cannabis and cannabis-derived products in Canada.?A BAT subsidiary will acquire a 19.9% equity stake in Organigram Holdings to become the largest shareholder, with the ability to appoint two directors to Organigram Holdings' board. The investment, valued at approximately 126 million pounds, was priced at C$3.79 per share.

To operationalise the collaboration agreement, a "Centre of Excellence" will be established to focus on developing the next generation of cannabis products with an initial focus on cannabidiol. BAT and Organigram will contribute scientists, researchers, and product developers to the Centre of Excellence. BAT and Organigram will grant each other a licence to certain intellectual property to enable the development of new and potentially disruptive products.