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Organigram Holdings Inc., a leading Canadian cannabis company, is ramping up its efforts to expand into the lucrative U.S. market. With the financial backing of British American Tobacco (BAT), the company is poised to make strategic acquisitions as part of its vision to become a global cannabis leader.
Financial Backing: BAT invested C$124.6 million in Organigram, enabling the creation of an investment pool, Jupiter, aimed at funding U.S. and international acquisitions.
Recent Acquisitions: Organigram recently announced plans to acquire Motif Labs Ltd. for up to C$100 million, a move designed to boost its market share and solidify its position as a leader in the cannabis industry.
Phylos Bioscience Investment: The company has already invested in U.S.-based Phylos Bioscience, specializing in seed technology.
In its latest quarter, Organigram posted a:
Narrowed net loss: C$5.4 million, down from C$26.6 million in the same period last year.
Revenue increase: Up 22% to C$44.7 million, surpassing analyst expectations.
The gains were driven by strong recreational cannabis sales in Canada and growth in international markets.
While competitors like Canopy Growth and Tilray Brands have faced challenges in the Canadian market, Organigram has managed to gain traction and improve profitability.
Canopy Growth: Up 22.9% in 2024.
Tilray Brands: Down 46% in 2024.
Organigram: Positioned for further growth with U.S. acquisitions.
Organigram’s focus on expanding into the U.S. market and exploring international opportunities aligns with its goal of becoming a global leader in the cannabis space. With BAT’s financial backing and recent success in increasing revenue and narrowing losses, the company appears well-positioned for future growth.
Can Canadian Cannabis Companies Thrive in the U.S. Market?
Yes, they have the expertise and funding to dominate.
No, the U.S. market is too competitive.
Maybe, but it depends on federal legalization in the U.S.
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