Organigram Holdings shares were up 29% at $1.50 after a C$124.6 million follow-on strategic equity investment from BT DE Investments, a wholly owned subsidiary of BAT.Organigram said the investment will allow it to deliver on its stated ambition to extend its footprint beyond Canada, as well as strengthen its financial position for long-term, sustainable growth.
The company will be able to invest in improving its core business, while improving operations to deliver on cost-saving efficiencies, accelerating earnings growth. The majority of the investment will be used to create a strategic investment pool, named Jupiter, which will target investments in emerging cannabis opportunities that will enable Organigram to apply its industry-leading capabilities to new markets.