Organigram Holdings Inc. says a $90-million deal to buy a cannabis vapes and infused pre-rolls business has made Organigram Canada’s largest recreational pot company by market share.
Organigram's deal to purchase Motif Labs Ltd. is structured as $50 million in cash and $40 million in Organigram common shares.
Motif shareholders will be entitled to receive an additional $10 million worth of shares, if Organigram achieves certain benchmarks within a year of the transaction closing.
Motif is based in Aylmer, Ont., and its portfolio of brands include Boxhot, Debunk, Boondocks, Rizzlers and Floe State.
Organigram is based in Moncton, N.B., and is behind the Shred, Trailblazer, Big Bag O' Buds and Edison Cannabis Co. brands.
Organigram says the deal will give it a 12.4 per cent market share and two more facilities dedicated to cultivation and manufacturing of cannabis.
"The highly complementary acquisition of Motif establishes Organigram as Canada’s largest cannabis company by market share and accelerates our vision to be a leading cannabis company across all major categories," Organigram CEO Beena Goldenberg said in a statement.
This report by The Canadian Press was first published Dec. 6, 2024.
Companies in this story: (TSX:OGI)
Tara Deschamps, The Canadian Press