UK TOBACCO giant BAT has extended its reach into the cannabis space with a C$221 investment into Canadian firm Organigram.
A British American Tobacco (BAT) subsidiary has secured a 19.9% equity interest in the NASDAQ and Toronto Stock Exchanges-listed firm.
This follows BAT’s entry into the UK cannabis space with the launch of a new CBD vaping device – Vuse CBD Zone – as reported in BusinessCann earlier this year.
BAT, which sells Dunhill, Lucky Strike and Benson & Hedges, disclosed its interest in moving ‘beyond nicotine’ last year.
‘Building A Better Tomorrow’
Organigram and BAT say they have entered into a Product Development Collaboration Agreement which will see the creation of a ‘Center of Excellence’ looking to develop ‘the next generation of cannabis products with an initial focus on CBD’.
The Center of Excellence will be located at Organigram’s indoor facility in Moncton, New Brunswick. Organigram also has a suite of cannabis brands including; The Edison Cannabis Company, SHRED and Trailblazer.
Dr. David O’Reilly, Director, Scientific Research at BAT, said: “Today’s announcement underscores BAT’s commitment to accelerating our transformation and building A Better Tomorrow.”
