British American Tobacco Converts $65M Debt in Charlotte’s Web and Finances Organigram Deal
British American Tobacco will convert US$65 million of Charlotte’s Web debt into equity, inject US$10 million via private placement and emerge with roughly 40% ownership while eliminating long-term debt. Organigram shareholders approved 93% support to issue up to 96 million new shares tied to its Sanity Group acquisition and BAT private placement.
1. Debt Conversion and Equity Injection in Charlotte’s Web
British American Tobacco will convert approximately US$65 million of Charlotte’s Web’s debt, including accrued interest, into equity and inject an additional US$10 million through a private placement. This transaction eliminates the company’s largest liability, removes all long-term debt and leaves BAT holding roughly 40% of outstanding shares.
2. Organigram Acquisition Financing
At Organigram’s annual general meeting, 93% of shareholders approved the acquisition of Sanity Group and a related financing arrangement with BAT. The deal allows Organigram to issue up to 96 million new shares tied to the acquisition and BAT’s private placement, supporting its international expansion strategy.