Organigram announces $2M investment in Open Book Extracts

Organigram Holdings announced a $2M minority investment in Steady State d/b/a Open Book Extracts in the form of a convertible note. Based in Roxboro within North Carolina’s “Research Triangle,” OBX specializes in legal cannabinoid ingredient production and serves as a one-stop formulation and finished goods manufacturer, simplifying its clients’ supply chains. The investment in OBX provides a further footprint in the U.S, which was a strategic priority set out in the Jupiter investment strategy. OBX is a professional, quality-led company that is growing quickly and is uniquely positioned to leverage the expanding legal hemp derivatives market. Through its investment in OBX, Organigram will gain valuable insights into the U.S. market and its consumers. In time, Organigram plans to work with OBX to explore potential product launches in the U.S. OBX and Organigram are currently discussing an opportunity for OBX to serve as a collaborative research partner for efficacy testing, technology development, and formulation sciences. OBX is nearing completion of its EU GMP certification, which will create further international collaboration opportunities between OBX and Organigram. Organigram’s $2M subordinate secured convertible note instrument is part of a larger funding round totaling ~ $15M. The most recent investors include a fund managed by KEY Investment Partners and the Lago Innovation Fund. Existing investors of OBX include BT DE Investments Inc., a subsidiary of British American Tobacco. The Note matures on October 16, 2026, unless converted beforehand into equity of OBX. If OBX completes a future equity raise of at least $5M, the Note will, subject to certain conditions, convert into equity at a 20% discount to the price of that financing round. The Note is secured by a general security charge over OBX’s assets and is subordinate only to one security holder. Funds will be used for general corporate purposes. As part of the convertible note subscription, Organigram will be granted one observer seat on the OBX board.