British American Tobacco’s wholly‑owned subsidiary, BT DE Investments Inc., announced a private‑placement investment of C$65.2 million in Organigram Global Inc. on February 19 2026. The investment was priced at C$3.00 per share, comprising a C$2.34 per share top‑up rights exercise and shares issued in connection with the Sanity Group acquisition. A senior secured credit facility of up to US$60 million was also disclosed to cover acquisition expenses, related transaction costs and general working capital needs.
BAT’s stake in Organigram grew to 45 percent in November 2023, and the new investment represents a strategic foray into the cannabis sector. By backing Organigram’s purchase of Germany’s Sanity Group, BAT gains exposure to a rapidly expanding European medical‑cannabis market while leveraging its expertise in regulated consumer products.
Organigram’s financial performance provides context for the scale of the investment. In fiscal 2026 Q1, the company reported net revenue of US$63.5 million, a 49 percent year‑over‑year increase, and a net income of US$20.0 million, compared with a net loss of US$27.5 million in the prior year. For the full fiscal year ended September 30 2025, Organigram posted net revenue of US$80.1 million and annual earnings of –US$17.9 million.
The Sanity Group acquisition is valued at up to €250 million, with an upfront consideration of €113.4 million that includes €80 million in cash and €33.4 million in Organigram shares. The C$65.2 million private‑placement proceeds fund the cash portion of the deal, while the senior secured credit facility provides additional liquidity for transaction costs and working capital.
James Yamanaka, CEO of Organigram, said, “The proposed acquisition of Sanity Group marks a pivotal step in Organigram’s global expansion strategy as a leader in the rapidly expanding cannabis industry. This transformational acquisition will bring together two market leaders, extend our commercial footprint into Europe, and strengthen our competitive edge in the world’s largest federally legal cannabis markets.” Paolo De Luca, Chief Strategy Officer, added, “Organigram’s proven track record in executing highly strategic and complementary M&A is exemplified by our proposed acquisition of Sanity Group—a transaction that is both strategically significant and financially accretive. By combining our strengths as focused cannabis pure‑play companies, we will be well positioned to deliver meaningful value for our shareholders and accelerate growth in key European markets.”
Analysts have issued mixed views on the transaction. Some maintain a “Buy” stance, while others adopt a “Hold” rating, reflecting differing assessments of the valuation and execution risk associated with the German regulatory environment.
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