OGI - Organigram Supports Cannabis In Germany With $15M Initial Investment In This Berlin Marijuana Co. | Benzinga
Organigram Holdings Inc. (NASDAQ:OGI) (TSX:OGI) announced on Tuesday a strategic investment aimed at expanding its presence within the burgeoning European cannabis market.
What Happened
The Toronto-based company will utilize proceeds from its Jupiter strategic investment pool and invest €14 million ($15 million) initially. The sum includes €11.5 million via an unsecured convertible note and €2.5 million to purchase equity interests from existing Sanity Group founders and shareholders providing Organigram with a minority stake in Berlin-based cannabis company Sanity Group GmbH.
Additionally, the company said it will advance another €3 million as a second tranche of the unsecured convertible note for future opportunities to be pursued by Sanity subject to the satisfaction of certain conditions.
Concurrent with the investment, Organigram and Sanity Group have entered into a new supply agreement to include significantly higher volumes and the intention to work together on the commercialization of Organigram's brands and intellectual property in Germany.
Why It Matters
Sanity holds roughly 10% share of the German medical cannabis market, maintaining a distribution network with over 2,000 pharmacies working with approximately 5,000 physicians in Germany. As of April 1, ...