By Chris Wack

 

Organigram Holdings shares were up 29% at $1.50 after a C$124.6 million ($91.1 million) follow-on strategic equity investment from BT DE Investments, a wholly owned subsidiary of BAT.

The stock hit its 52-week low of 97 cents on Oct. 27, and is down 61% in the past 12 months.

Organigram said the investment will allow it to deliver on its stated ambition to extend its footprint beyond Canada, as well as strengthen its financial position for long-term, sustainable growth.

The company will be able to invest in improving its core business, while improving operations to deliver on cost-saving efficiencies, accelerating earnings growth.

The majority of the investment will be used to create a strategic investment pool, named Jupiter, which will target investments in emerging cannabis opportunities that will enable Organigram to apply its industry-leading capabilities to new markets.

 

Write to Chris Wack at chris.wack@wsj.com

 

(END) Dow Jones Newswires

November 06, 2023 10:25 ET (15:25 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.
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