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.
