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BAT to Strengthen Strategic Partnership with Organigram

PRESS RELEASE

06 NOVEMBER 2023

BAT to Strengthen Strategic Partnership with Organigram

  • BAT subsidiary deepens strategic partnership with Organigram, investing c.£74m (CAD$124.6m) between January 2024 and January 2025 and increasing its equity position from c.19% to 45%
  •  Organigram is a leading Canadian licensed producer of cannabis
  •  Investment enhances Product Development Collaboration, which has been focussed on cutting-edge R&D and product innovation
  •  Organigram to establish strategic investment pool, intended to be applied for emerging opportunities and its investments within the cannabis space
     

This investment is intended to deepen the strategic relationship between Organigram Holdings Inc. (Organigram) and BAT, which has strengthened since BAT’s initial investment and the establishment of the Product Development Collaboration (PDC) in March 2021. The PDC was set up to leverage the expertise of both companies, in order to develop the next generation of non-combustible cannabis products.

BAT is pleased with Organigram’s performance and continues to be impressed by the careful financial governance of the company.  BAT also remains supportive of the category stewardship displayed by Organigram’s management team, particularly in response to tough market conditions.  These factors give BAT confidence that the new investment can position Organigram to capitalise on market opportunities and deliver incremental value for both companies.

The majority of the investment will be allocated for Organigram to establish a strategic investment pool, intended to be applied for emerging opportunities within the cannabis space to accelerate Organigram’s growth and to support geographic, technological and product expansion. The investment remains subject to customary conditions, including necessary approvals by the shareholders of Organigram.

Since March 2021 BAT has made a series of minority investments in the cannabis space through carefully selected partners.  BAT continues to explore future opportunities by partnering with and learning from its cannabis investment companies, which includes Organigram.

Organigram is a NASDAQ and TSX listed company that has a proven track record of consumer-led innovation and developing high quality adult-use recreational and medical cannabis products, which are legally available in Canada.

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Yetunde Ibe: +44 (0)20 7845 1095
John Harney: +44 (0)20 7845 1263
Jane Henderson: +44 (0)20 7845 1117


Notes to Editors


BAT has considered its obligations under applicable laws and regulations in undertaking this transaction and has taken appropriate measures to ensure compliance with such laws.
 

About Organigram Holdings Inc.


Organigram Holdings Inc. is a NASDAQ Global Select Market and TSX listed company whose wholly owned subsidiaries include: Organigram Inc. and Laurentian Organic Inc., licensed producers of cannabis and cannabis-derived products in Canada.
 

Organigram is focused on producing high-quality cannabis for patients and adult recreational consumers, as well as developing international business partnerships to extend its global footprint. Organigram has also developed and acquired a portfolio of legal adult-use recreational cannabis brands. Organigram operates facilities in Moncton, New Brunswick and Lac-Supérieur, Quebec, with a dedicated edibles manufacturing facility in Winnipeg, Manitoba. The Company is regulated by the Cannabis Act and the Cannabis Regulations (Canada).
 

Forward-looking statements


This release contains certain forward-looking statements, including "forward-looking" statements made within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are often, but not always, made through the use of words or phrases such as "believe," "anticipate," "could," "may," "would," "should," "intend," "plan," "potential," "predict," "will," "expect," "estimate," "project," "positioned," "strategy," "outlook", "target" and similar expressions. These include statements regarding our customer target ambition, New Categories revenue targets and our ESG targets.
 

All such forward-looking statements involve estimates and assumptions that are subject to risks, uncertainties and other factors. It is believed that the expectations reflected in this release are reasonable but they may be affected by a wide range of variables that could cause actual results to differ materially from those currently anticipated. A review of the reasons why actual results and developments may differ materially from the expectations disclosed or implied within forward-looking statements can be found by referring to the information contained under the headings “Cautionary Statement” and "Group Principal Risks " in the 2021 Annual Report and Form 20-F of British American Tobacco p.l.c. (BAT).
 

Additional information concerning these and other factors can be found in BAT's filings with the U.S. Securities and Exchange Commission ("SEC"), including the Annual Report on Form 20-F and Current Reports on Form 6-K, which may be obtained free of charge at the SEC's website, http://www.sec.gov and BAT’s Annual Reports, which may be obtained free of charge from the BAT website www.bat.com.
 

Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser. The forward-looking statements reflect knowledge and information available at the date of preparation of this release and BAT undertakes no obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on such forward-looking statements.