Globe/CP say Organigram acquires edibles makerOrganigram Holdings Inc (C:OGI)
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Last Close 4/6/2021 $4.14
Wednesday April 7 2021 - In the News
Also Agraflora Organics International Inc (C:AGRA) In the News
The Globe and Mail reports in its Wednesday edition that Organigram has acquired the Edibles & Infusions Corp. in a $35-million stock deal, as the cannabis producer looks to tap surging demand for marijuana-based edibles and soft chews. A Canadian Press dispatch to The Globe says Organigram shares dropped 5 per cent to $4.14, after the Canadian company announced its deal with Vancouver-based cannabis firm Agraflora Organics International, which owns 43 per cent of EIC. Marijuana edibles, such as gummy bears, brownies and drinks, have been the biggest beneficiaries of a demand windfall for cannabis-related companies during the pandemic, as consumers stuck at home spent more on their products. The deal comes on the heels of British American Tobacco announcing last month that it would buy a nearly 20-per-cent share of Organigram for about 126 million pounds ($219-million), as it looks to diversify beyond its main tobacco business. Organigram said it expects first sales of EIC-manufactured soft chews in the fourth quarter of fiscal 2021. Hyperion Capital Inc. acted as exclusive financial adviser to Organigram and Goodmans LLP acted as legal adviser. The deal already has Toronto Stock Exchange approval.