BAT Group has entered into an agreement with Organigram Inc. to expand its portfolio “beyond nicotine,” according to the company’s press release. The collaboration reinforces BAT’s consumer-centric multi-category approach, which has seen continued momentum and growth.
Under the terms of the agreement, a BAT subsidiary will acquire a 19.9% equity share in Organigram valued at about 126 million pounds.
The agreement with Organigram follows a pilot launch of BAT’s Vuse CBD Zone in Manchester, U.K, earlier this year.
Through the collaboration, BAT will gain access to cutting-edge R&D technologies, product innovation, and cannabis expertise.
Organigram has a proven track record of consumer-led innovation and developing high-quality adult-use recreational and medical cannabis products, which are legally available in Canada.
The collaboration underscores BAT’s commitment to accelerating its transformation and delivering on its purpose of building ‘A Better Tomorrow.’
BAT stock is currently gaining. BATS: LON is up 0.31%
