Organigram Holdings closed the second round of funding from its partner, British American Tobacco (BAT), on August 30.

This is the second of three rounds of funding from BT DE Investments Inc., a wholly-owned subsidiary of BAT. Plans for the partnership between British American Tobacco and Organigram were announced in late 2023, with an investment of nearly $125 million from BAT.

At the time, Organigram said most of the $124.6 million investment would be used to create a strategic investment pool named Jupiter, focusing on emerging cannabis opportunities, including geographic expansion.

The first round of funding closed on January 23, 2024. The third round of funding is expected in early 2025. 

“With two tranches of the Jupiter pool now funded, combined with our strong balance sheet and targeted investment strategy, Organigram is well on its way to executing on its ambitious growth plan focusing on international, technological and product expansion,” said Paolo De Luca, Chief Strategy Officer of Organigram in a press release on Sept 3, 2024.

“Our inaugural Jupiter investment in Open Book Extracts marked our second investment in the U.S. market, and our first international investment in Sanity Group represents a significant first step in our ambitions to grow our footprint in the fast-growing German market.”

On June 24, Organigram announced a $21 million investment from its Jupiter strategic investment pool, giving it a minority stake in German cannabis company Sanity Group GmbH and, therefore, a foothold in the German market. 

In March, Organigram announced a USD$2 million minority investment in Steady State LLC (dba Open Book Extracts or OBX) from the Jupiter fund. Based in North Carolina, OBX specializes in cannabinoid ingredient production and serves as a one-stop formulation and finished goods manufacturer. 

In its most recent quarterly report in August, the New Brunswick-based cannabis company reported net revenue of $41.1 million for the third quarter of 2024 and net income of $2.8 million, compared to a loss of $213.5 million in the same reporting period in 2023.

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