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Organigram Acquires Craft Cannabis Producer Laurentian Organic for USD 36m.

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Vincent

MANews-(C)2009-2021

Canada-based cannabis producer Organigram Holdings Inc. (TSX: OGI) (NASDAQ: OGI) has acquired all of the issued and outstanding shares of Quebec-based craft cannabis licensed producer Laurentian Organic Inc. in a cash and share transaction for aggregate consideration of USD 36m, plus earnout consideration, the company said.

The earnout is payable, if applicable, based on Laurentian surpassing certain EBITDA thresholds in calendar 2022 and 2023.

The purchase price consisted of USD 10m in cash, and USD 26m by the issuance of 10,896,442 shares.

The Laurentian acquisition further strengthens Organigram's position in the Canadian market through the expansion of the company's portfolio into premium products, including hash and craft cannabis, in addition to providing an important presence in the province of Quebec through a scalable cultivation and operational footprint.

Organigram will gain a foothold in the Quebec market and plans to leverage its strong internal field sales force and national distribution capabilities to...

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