rose 30 per cent after it says BAT signed a deal to increase its stake in the cannabis company by investing $124.6-million.
The company says it plans to use $83.1-million of to create a strategic investment pool to help grow its geographic footprint and invest in emerging growth opportunities. The rest of the money will be will be used for general corporate purposes.Under the proposal, which is subject to regulatory and Organigram shareholder approvals and other conditions, BAT has agreed to buy 38,679,525 common shares and non-voting class-A convertible preferred shares over three tranches.
BAT already holds an 18.8 per cent stake in Organigram. Organigram says the deal will see BAT increase its voting common share ownership stake to 30 per cent and overall equity interest to 45 per cent, including the non-voting class-A preferred shares.Tickers mentioned in this story