British American Tobacco Acquires 19.9% Stake in OrganiGram

British American Tobacco Kenya (BAT)'s net income rose by 0.71% in the first half of the year, according to figures published on Thursday.

British American Tobacco (BAT) has signed a strategic collaboration agreement with Organigram Inc., a wholly-owned subsidiary of publicly-traded Organigram Holdings Inc. 

Under the terms of the transaction, a BAT subsidiary will acquire a 19.9% equity stake in Organigram Holdings Inc valued at £126 million ($176 million) to become the largest shareholder. 

The two firms will create a “Center of Excellence” at Organigram’s facility in Moncton, funded equally by both parties.  

BAT will own the intellectual property rights for products developed at the new R&D facility, and Organigram will be granted a royalty-free licence under the terms of the agreement.  

Both companies will contribute scientists, researchers, and product developers.