Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI) has added Germany to its list of international markets after securing a new supply agreement with Berlin’s Sanity Group.
The Canadian cannabis company announced the milestone on Tuesday and will be providing high-grade cannabis flower to the German company’s medical division.
The flower being shipped by Organigram was grown at its flagship indoor cultivation facility in Moncton, New Brunswick. Organigram will also be granting Sanity Group strain exclusivity rights on certain genetics it has developed.
“With the German cannabis industry slowly moving toward a recreational adult-use model, we are excited to begin solidifying our relationships with reputable medical cannabis product developers and distributors like Sanity Group,” said Oranigram’s CEO Beena Goldenberg.
“We look forward to bringing Organigram’s high-quality indoor-grown flower to our German medical patients,” said Finn Age Hänsel, Founder and Managing Director of Sanity Group.
Organigram is pleased to supply medical cannabis to Israel, Australia, and as of today, Germany. With its first European supply agreement, Organigram will supply dried flower to the medical division of German cannabis company @SanityGroupEU.
Read More: https://t.co/RKPEYrh8P8 pic.twitter.com/UIiSB4hw8O
— Organigram (@Organigram_Inc) May 23, 2023
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At the end of March, Organigram invested US$4 million in Weekend Holdings Corp and its vaporizer subsidiary Greentank Technologies.
Last fall, Sanity Group completed a US$37.6 million funding round led by British American Tobacco (LON: BATS), receiving funding from investment firms such as Casa Verde Capital and Redalpine.
Sanity Group says it was Europe’s largest-ever cannabis investment round and that it was able to accelerate the growth of its medical and consumer business units with the funds.
British Columbia’s Village Farms International, Inc. (NASDAQ: VFF) also started shipping its Pure Sunfarms cannabis to Germany’s IUVO Therapeutics GmbH at the beginning of May.
In 2022, the German medical cannabis market was estimated to be valued at approximately €200 million, one of the largest in Europe. Germany announced plans to legalize adult-use cannabis last fall but is yet to offer a timeline for the legislation coming into effect.
Organigram’s shares stayed flat at $0.66 Tuesday on the Toronto Stock Exchange.
rowan@mugglehead.com
