Organigram Gets Additional CA$6.3M Investment From BAT, Which Raises Its Stake In The Company To 19.5%

BAT Exercises Top-Up Rights to Invest $6.3 Million Resulting in an Increase in Equity Position from 18.8% to 19.5%
Organigram Holdings Inc. (TSX:OGI) (NASDAQ:OGI) revealed Tuesday that BAT has invested an additional CA$6.3 million ($4.97 million) into Organigram to enhance its equity ownership position in the company from 18.8% to 19.5% as of December 31, 2021 by exercising its rights pursuant to an investor rights agreement. 

The investor rights agreement was entered into between Organigram and BAT in connection with the formation of the product development collaboration between the two companies and the strategic investment of CA$221 million made by BAT in Organigram in March 2021. The agreement allows BAT periodic top-up rights to permit maintenance of its percentage ownership following certain issuances. The price per share offered to BAT is consistent with the price per share at which the relevant issuances were made subject to maximum discount requirements of the TSX.