Organigram Global Inc., (NASDAQ: OGI), (TSX: OGI), informed investors that it was buying Collective Project Limited (for approximately C$6.2million ($4.3million)). The deal’s value may rise by C$24 million (16.6 million dollars) if you add in milestone payments or potential earnouts.
Organigram stated that it has gained immediate access to the cannabis beverages category, which is a fast-growing market. It was noted by the company that these products were already on mass retail shelves. U.S. liquor chains like Specs Total Wines Top Ten Liquors and Top Ten Liquors offer hemp-derived THC drinks. It is speculated that big convenience stores and major retail outlets are planning to pilot test the products.
Collective Project was already on the list of Top Ten Liquors Minnesota as well as Total Wines North Carolina, South Carolina and Indiana. Organigram sees this acquisition as an opportunity to launch its own beverage line. Collective Project, which has flags planted in both the U.S. and Canada, was founded by Hamilton, Ontario in 2013. It also sells a line of craft beverages that is a top seller in Canada.
The purchase of Collective Project represents yet another significant strategic step towards Organigram’s ambitions to be a global leader. The acquisition of Collective Project not only represents the first commercial entry of Organigram into the U.S. hemp-derived THC beverages market, but it also speeds up our entry into Canada’s cannabis beverage category, which we think is poised to grow at home, said Beena goldenberg, CEO of Organigram.
Collective Project’s collaborations with art communities are well-known. The products of this company feature over 2,000 different artists.
“We are pleased to be working with Organigram on this transaction as not only Canada’s leading cannabis company but also one that is deeply committed to high-quality products backed by R&D and science-backed innovation,” said Matt Johnston, Collective Project co-founder.
Organigram has stated that it will distribute its products in Connecticut, New Jersey and Illinois by the end the year. The products are available across Canada in Ontario, British Columbia and Saskatchewan. Newfoundland, Nova Scotia, Newfoundland, Newfoundland, Alabama, Connecticut, New Jersey, and Illinois.