A $2 Billion Opportunity In Cannabis: How A Tobacco Giant Is Helping Organigram Seize The German Market
On July 10, Zuanic & Associates hosted a panel discussion focusing on the European cannabis market, featuring Benna Goldenberg, CEO of Organigram Holdings (NASDAQ: OGI), and Finn Age Hansel, CEO of Sanity Group.
Senior analyst Pablo Zuanic led the discussion, which centered on the companies’ strategies for expanding in Germany and the broader European market.
Organigram’s Strategic Move In Germany
Organigram has been actively expanding its presence in the international markets, with a particular focus on Germany. And, according to CEO Benna Goldenberg, the company’s partnership with Sanity Group is a key element in this strategy. The collaboration is bolstered by British American Tobacco (NYSE: BTI), a strategic investor in both companies.
Investment Details And Strategic Goals
Organigram’s initial investment in Sanity Group amounted to €14 million ($15.22 million), comprising €11.5 million through an unsecured convertible note and €2.5 million for purchasing equity interest from founders and other shareholders.
This investment includes an option to advance an additional €3 million based on achieving specific milestones. The partnership also grants Organigram a board seat in Sanity Group, enhancing its influence and oversight.
Sanity Group’s Market Presence And Growth
Goldenberg sees multiple strategic benefits in this partnership, arguing that Sanity Group’s established market presence in Germany and its strong distribution network make it an ideal partner. The company’s position as the number two player in the German flower market, combined with its successful pilot …