New Brunswick’s cannabis cultivator Organigram Holdings Inc. (TSE: OGI) (NASDAQ: OGI) has received the second of three tranches of its previously announced investment from British American Tobacco PLC (BAT) (NYSE: BTI).
Organigram closed the first tranche in January, valued at C$41.5 million, and obtained the second of an equal amount on Friday. BAT will be buying the remaining 12.9 million shares by the end of February next year.
These funds are being put into the “Jupiter” strategic investment pool, which is intended to help the company expand internationally. In addition to BAT, Jupiter has received contributions from cannabis operators such as North Carolina’s Open Book Extracts and Germany’s Sanity Group GmbH.
“With two tranches of the Jupiter pool now funded, Organigram is well on its way to executing on its ambitious growth plan focusing on international, technological and product expansion,” Paolo De Luca, Organigram’s Chief Strategy Officer, said in a press release.
Organigram says it currently sits in spot number three on the list of Canada’s top cannabis producers. The grower is also the number one CBD gummy and hash manufacturer nationwide.
Organigram: Q3 2024 Results
– Net revenue: $41.1Mn (up +25%)
– Overall #3 market position in Canada
– International expansion underwayRead more:https://t.co/hTW6cyQQgQ$ogi shares are up +22%. Recall: BAT's 45% equity interest in Organigram $bti $bats pic.twitter.com/knw4krzhYc
— Tobacco Insider (@tobaccoinsider) August 13, 2024
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Organigram capitalizes on infused pre-roll demand
A recent white paper from Custom Cones USA and the cannabis data firm Headset detailed how infused pre-rolls have been the number one driver of the pre-roll segment’s unprecedented growth. Particularly in the United States.
During the last fiscal year ending in June this segment saw more revenue growth than any other in the U.S., according to the report. Their popularity is quite apparent in Canada too.
“Infused pre-rolls remain the fastest-growing segment in cannabis,” Organigram chief executive Beena Goldenberg said in an interview with BNN Bloomberg this month. “A year ago we weren’t even involved in that segment and now we are a key player.”
In the interview, Goldenberg expressed how pleased she was that the company had exceeded revenue expectations for this year’s third fiscal quarter ending Jun. 30. “We’re very thrilled with the results,” she said.
Net revenue increased by 25 per cent year-over-year to C$41.1 million. She attributes these financial successes to expanded operations in Quebec, increased product quality (apparently) and the company’s extract-saturated joints.
rowan@mugglehead.com
