MONCTON, N.B. — Organigram Holdings Inc. says it has taken a minority stake in European cannabis company Sanity Group through a $21 million investment.
Moncton-based pot producer Organigram says it may eventually advance another $4.5 million to Sanity through an unsecured convertible note, which made up the bulk of its initial investment.
The investment is meant to help Organigram capitalize on the recent legalization of cannabis in Germany, where Sanity is based and holds a roughly 10 per cent share of the medical pot market.
The arrangement could also see the companies deepen their presence in Switzerland, where Sanity is involved in a recreational pot pilot and is expected to invest in distribution channels.
The investment expands on a 2023 agreement that saw Organigram supply Sanity with medical pot for distribution across the market.
Organigram will now be able to appoint a representative to Sanity's board.
This report by The Canadian Press was first published June 25, 2024.
Companies in this story: (TSX:OGI)
The Canadian Press
