Organigram Wants To Become Canada’s Largest Cannabis Company By Market Share Via $71M Acquisition Deal
Organigram Holdings Inc. (NASDAQ:OGI) (TSX:OGI) announced the acquisition of 100% of Motif Labs Ltd. for CA$90 million ($64 million), comprising of CA$50 million in cash and CA$40 million in Organigram common shares, based on a 30-day trading VWAP of $2.321 on the TSX.
An additional CA$10 million contingent consideration is payable in shares, conditional on achieving a share price above $3.2203 within 12 months.
The deal is financed through Organigram’s cash reserves.
Why It Matters
The company said the move positions Organigram as Canada’s largest cannabis company by market share (12.4%), being among the top companies within the vape and infused pre-roll categories.
The deal also enhances Organigram’s capabilities and expands its presence nationwide, positioning it for international growth as cannabis regulations evolve globally.