Organigram Holdings Inc (NASDAQ: OGI) (TSX: OGI), a producer of high-quality cannabis for medical and recreational use, announced on Wednesday the completion of the initial tranche of the C$124,559,674 strategic equity investment by BT DE Investments Inc, a subsidiary of British American Tobacco plc (BAT).

The first tranche involved the acquisition of 12,893,175 common shares at CAD3.2203 per share, generating gross proceeds of CAD41,519,891. The remaining shares will be issued in two equal tranches around 30 August 2024 and 28 February 2025.

Most of the CAD124.6 m investment will fund the creation of a strategic investment pool named Jupiter. This initiative aims to capitalize on emerging cannabis opportunities globally, leveraging Organigram's industry-leading capabilities. As the legal recreational cannabis market continues to expand, the investment will support Organigram's strategic priority of geographic expansion.

With a decade of experience in the Canadian cannabis market, Organigram has achieved market leadership through successful investments. Acquisitions like Edibles and Infusions Corporation, Laurentian Organics Inc and recent investments in Phylos Bioscience Inc have positioned Organigram as a leader in gummies, hash and the first to launch THCV products in Canada. The proven track record and industry knowledge will be scaled through Jupiter.

Organigram Holdings Inc operates subsidiaries such as Organigram Inc. The company seeks international business partnerships to extend its global footprint and has developed a portfolio of adult-use recreational cannabis brands. Organigram operates facilities in Moncton, New Brunswick, Lac-Supérieur, Quebec and a dedicated edibles manufacturing facility in Winnipeg, Manitoba. The company adheres to the Cannabis Act and Cannabis Regulations (Canada).