British American Tobacco (BAT) is set to buy a near 20% stake in Canadian licensed producer Organigram for about $175.81 million, CNBC reports. The move comes less than a month after the company’s Chief Marketing Officer Kingsley Wheaton called CBD “an exciting growth area” for the company’s “business for the future.”

The investment makes BAT Organigram’s largest shareholder.

In a statement to CNBC, BAT said Organigram “has a proven track record of consumer-led innovation and developing high quality adult-use recreational and medical cannabis products, which are legally available in Canada.” The world’s second-largest tobacco company will be able to appoint two directors to Organigram’s board.

Both BAT and Organigram will contribute scientists, researchers, and product developers to a Center of Excellence, which will be established at Organigram’s New Brunswick facility, BAT said in the report. BAT will also have access to research and development technologies, product innovation, and cannabis expertise.

BAT’s brands include American Spirit, Camel, Pall Mall, Rothman’s, Newport, Lucky Strike, Kent, and Dunhill cigarettes, oral tobacco brands Camel Snus and Grizzly, and vape and non-combustible brands Vuse, Vype, Glo, and Velo. Earlier this year it launched a pilot CBD vape product in Manchester, England.

In January, the world’s third-largest tobacco company, Altria Group, registered in Virginia to lobby on cannabis policy. Last year, it hired Denver, Colorado-based Brownstein Hyatt Farber Shreck, one of the nation’s top cannabis and hemp law firms, to lobby Congress on federal policies related to CBD and “non-tobacco excise taxes.” Altria owns 45% of Canadian licensed producer Cronos Group after investing $1.8 billion in the company in 2018. It also filed for two cannabis vaporizer technology patents in 2020.

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Authored By:

TG Branfalt
TG joined in 2014 as a news writer and began hosting the podcast in 2016. He is based in upstate New York, where he also teaches media studies at a local university.British American Tobacco (BAT) will buy a roughly 20% stake in licensed Canadian manufacturer Organigram for $175.81 million, reports CNBC. The move comes less than a month after the company’s marketing director, Kingsley Wheaton, described CBD as an exciting growth area for the company’s future operations.

This investment makes BAT Organigram the main shareholder.

In a statement to CNBC, BAT said Organigram has a proven track record of innovation in the consumption and development of high-quality adult-use cannabis products, recreational and medical, that are legally available in Canada. The world’s second largest cigarette company will be able to appoint two directors to Organigram’s board of directors.

According to the report from BAT and Organigram, scientists, researchers and product developers will work in the centre of excellence, which will be located at Organigram’s New Brunswick facility. BTBs will also have access to research and development technologies, innovative products and cannabis expertise.

BAT brands include American Spirit, Camel, Pall Mall, Rothman’s, Newport, Lucky Strike, Kent and Dunhill cigarettes; the Camel Snus and Grizzly mouthwash brands; and the Vuse, Vype, Glo and Velo vape and fireproof brands. Earlier this year, a CBD-based vape product was launched in Manchester, England as part of a pilot project.

In January, the third largest cigarette company in the world, Altria Group, registered in Virginia to lobby for cannabis policy. Last year, she hired the Denver, Colorado-based Brownstein Hyatt Farber Shreck, one of the largest law firms in the country, to lobby Congress on federal policy regarding CBD and the excise tax on non-purchased products. Altria owns 45% of Canadian licensing company Cronos Group after investing $1.8 billion in the company in 2018. The company also filed two patents in 2020 for cannabis vaporizer technology.

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Author:

TG Branfalt

TG joined the team in 2014 as news editor and began hosting the podcast in 2016. He lives in upstate New York, where he also teaches media studies at a local university.

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