Mentioned:
There’s a new recreational cannabis giant forming in Canada.
What’s happening:
- Organigram (NASDAQ: OGI) has officially acquired highly popular recreational cannabis brand Motif Cannabis
By the numbers:
- Organigram will pay $90M CAD to acquire Motif Cannabis
- The acquisition is split between cash and equity, with $50M CAD being made as a cash payment and $40M CAD being paid through common shares in Organigram
Why it matters:
- The new acquisition will make Organigram the largest Canadian cannabis operator by market share for recreational cannabis
- Motif is one of the most popular recreational cannabis brands in Canada for both vaping and pre-rolls, which has fuelled significant sales growth and distribution expansion
Going deeper:
- As part of the new acquisition, Organigram will take ownership of both of Motif’s operating facilities in Ontario, Canada which are currently being used for both production and distribution and begin to vertically integrate them into their recreational cannabis operations
The intrigue:
- Vaping and concentrates in Canada have also started to turn into a big opportunity for Simply Solventless (TSXV: HASH) who has been starting to meaningfully ramp up revenue
