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HomeWeed NowMajor Tobacco Company Allocates $175M Investment in Canadian Cannabis Brand

Major Tobacco Company Allocates $175M Investment in Canadian Cannabis Brand

In recent news, British American Tobacco (BAT) plans to acquire a nearly 20% stake in the Canadian cannabis producer, Organigram, for about $175.81 million, as reported by CNBC. This investment solidifies BAT’s position as Organigram’s largest shareholder, marking a strategic move in the evolving cannabis industry landscape.

Kingsley Wheaton, BAT’s Chief Marketing Officer, highlighted the potential of CBD as “an exciting growth area” for the company’s future business endeavors, emphasizing BAT’s forward-looking approach and commitment to exploring the expanding cannabis market.

According to BAT’s statement to CNBC, Organigram has shown a strong focus on consumer-led innovation, delivering high-quality recreational and medical cannabis products legally available in Canada. This aligns with BAT’s vision of driving innovation and meeting the evolving needs of consumers within the cannabis sector.

As part of this investment, BAT will appoint two directors to Organigram’s board, further strengthening the collaborative partnership between the two industry leaders. Both BAT and Organigram will pool their scientific and research expertise to establish a Center of Excellence at Organigram’s New Brunswick facility, aiming to drive innovation and product development.

BAT’s diverse portfolio of renowned brands reflects its established presence in the global tobacco market. Additionally, BAT’s foray into non-combustible products underscores its dedication to embracing evolving consumer preferences and emerging product categories.

This strategic investment by BAT comes amidst an industry-wide shift, with other prominent tobacco companies, such as Altria Group, also exploring opportunities within the cannabis space, signaling the growing interest and investment in this rapidly expanding market segment.

In conclusion, BAT’s strengthened partnership with Organigram signifies a significant milestone in the convergence of the tobacco and cannabis industries, underscoring BAT’s commitment to pioneering innovation and shaping the future of the cannabis landscape.

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