British American Tobacco said on Thursday that it will invest around £126m for a 19.9% stake in Canada’s Organigram, a company focused on research and product development activities of next generation adult cannabis products, as it looks to expand its portfolio “beyond nicotine”.
Through the collaboration, BAT said it will gain access to cutting-edge R&D technologies, product innovation and cannabis expertise, complementing its “extensive plant-based expertise and development capabilities”.
“Organigram has a proven track record of consumer-led innovation and developing high quality adult-use recreational and medical cannabis products, which are legally available in Canada,” BAT said. “By leveraging Organigram’s first-hand experience, BAT will deepen its understanding of this rapidly expanding and evolving area.”
BAT’s investment will make it Organigram’s largest shareholder and give the company the ability to appoint two directors to the board directors and allow representation on its investment committee.