Organigram announces C$124.6M investment from BAT subsidiary

Organigram Holdings (OGI) is pleased to announce a C$124.6M follow-on strategic equity investment from BT DE Investments, a wholly-owned subsidiary of BAT (BTI). Subject to the receipt of certain regulatory approvals, approval from Organigram’s shareholders and other conditions, BAT will subscribe for 38,679,525 shares at a price of C$3.2203 per share, for gross proceeds of C$124.6M across three tranches. BAT will subscribe for 12,893,175M shares on the closing of the first tranche for gross proceeds of C$41.5M with the remaining 25,786,350 shares to be subscribed for in two further equal tranches on or around August 30, 2024 and February 28, 2025. In connection with the closing of the first tranche, Organigram and BAT will enter into an amended and restated IRA, pursuant to which BAT will be eligible to appoint up to 30% of the Board.