A subsidiary of British cigarette maker British American Tobacco (BAT) and Atlantic Canada-based cannabis producer Organigram has signed a 220 million Canadian dollar ($175 million) strategic collaboration with a focus on research and product development, the companies announced Thursday. It is one of the largest deals to date between a tobacco company and a cannabis producer and may signal revived interest in deal-making between the two sectors – which cooled in recent years following a flurry of collaborations around 2019. The BAT subsidiary is taking a 19.9% stake in Organigram by buying 58.3 million common shares at a price of CA$3.792, based on a five-day average price on the Toronto Stock Exchange. British American Tobacco and Organigram have agreed to establish a Center of Excellence in Moncton, New Brunswick to collaborate on product development with an initial focus on CBD.
Marijuana Business Daily, 03/11/2021 09:00:00