Organigram Shares Rise 29% After Investment By BAT Subsidiary
November 06 2023 - 9:40AM
Dow Jones News
By Chris Wack
Organigram Holdings shares were up 29% at $1.50 after a C$124.6
million ($91.1 million) follow-on strategic equity investment from
BT DE Investments, a wholly owned subsidiary of BAT.
The stock hit its 52-week low of 97 cents on Oct. 27, and is
down 61% in the past 12 months.
Organigram said the investment will allow it to deliver on its
stated ambition to extend its footprint beyond Canada, as well as
strengthen its financial position for long-term, sustainable
growth.
The company will be able to invest in improving its core
business, while improving operations to deliver on cost-saving
efficiencies, accelerating earnings growth.
The majority of the investment will be used to create a
strategic investment pool, named Jupiter, which will target
investments in emerging cannabis opportunities that will enable
Organigram to apply its industry-leading capabilities to new
markets.
Write to Chris Wack at chris.wack@wsj.com
(END) Dow Jones Newswires
November 06, 2023 10:25 ET (15:25 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
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