Organigram Seeks Acquisition of Stake in German Cannabis Venture

Organigram Holdings (TSXV:OGI) announced its subsidiary executed an agreement with Alpha-Cannabis Germany to acquire stake in the capital of the company.

As quoted in the press release:

Organigram Holdings, a leading licensed producer of medical marijuana, is pleased to announce that it has, through its wholly-owned subsidiary 10870277 Canada, executed an investment agreement dated as of October 10, 2018 with alpha-cannabis Pharma GmbH pursuant to which the Purchaser will acquire 8,333 common shares of ACG, representing a 25 [percent] stake in the capital of ACG, for aggregate proceeds of €1,625,000. The closing is subject to certain formalities under German law largely of an administrative nature.

As part of the investment and effective upon the closing of the investment, OGI’s wholly-owned subsidiary, Organigram Inc. will enter into two supply agreements with ACG: one for the supply of cannabidiol isolate from ACG to Organigram Inc., and the other for the supply of dried cannabis flower from Organigram Inc. to ACG. In addition, ACG and Organigram Inc. will enter into an agreement pursuant to which the companies will jointly evaluate and bid on certain licenses to supply medical cannabis to the German market.

Click here to read the full press release.

Source: www.newswire.ca