Organigram Secures C$65.2M from BAT, Price Target Raised to C$4
Canaccord raised Organigram’s price target to C$4 from C$3 and kept a Buy rating on February 19, coinciding with a C$65.2 million BT DE Investments capital infusion via 23.9 million shares and top-up rights. Five days later, Organigram introduced 10 Edison BOXHOT vape and pastille SKUs in Australia.
1. Price Target Upgrade and Rating
On February 19, Canaccord raised Organigram’s price target to C$4 from C$3 and maintained a Buy rating, reflecting improved outlook on the company’s branded cannabis portfolio and international growth prospects.
2. C$65.2M Capital Infusion by BAT
Under a subscription agreement executed the same day, BT DE Investments subscribed for 14,027,074 shares at C$3.00 and may purchase an additional 9,897,356 shares at C$2.335854, providing Organigram with C$65.2 million in gross proceeds to strengthen liquidity and fund expansion.
3. Australian Product Expansion
On February 24, Organigram launched ten Edison and BOXHOT medical vape and pastille SKUs in Australia, marking its entry into new formats and deepening its presence in the Australian medical cannabis market.
4. Strategic Financial Outlook
The capital infusion and expanded product mix aim to bolster Organigram’s balance sheet and support its international growth strategy, with strategic alignment to British American Tobacco enhancing potential distribution and scaling opportunities.