The stock of Canadian cannabis company Organigram Holdings Inc. OGI, +4.50% soared 10% premarket Monday, after the company said it is getting a C$124.6 million investment from British American Tobacco Plc BATS, -0.36%. The company will use C$83.1 million of the investment to crate “Jupiter,” a strategic investment pool targeting emerging growth opportunities to help Organigram expand its geographic footprint. The remaining C$41.5 million be used for general corporate purposes.
“This transaction furthers BAT’s support of Organigram as a trusted partner and accelerates the focus on innovative cannabis science and R&D outside of combustibles,” the company said in a statement. “The PDC is now in late-stage development of a suite of emulsions, novel vapor formulations, flavor innovations, and packaging solutions which are planned to be applied to certain products within Organigram’s portfolio in calendar 2024.” BAT and Organigram began to cooperate in 2021.