British American Tobacco PLC (LSE:BATS) has invested a further C$124.6 million in Canadian cannabis producer, Organigram Holdings.
The deal builds on an initial investment made by the FTSE 100-listed firm in 2021.
Organigram said the investment furthers BAT’s support of Organigram as a trusted partner and accelerates the focus on innovative cannabis science and R&D outside of combustibles.
The investment comes as BAT, the owner of Rothmans and Lucky Strike, pursues its 'A Better Tomorrow' strategy looking to increase the alternatives to combustible cigarettes.
Organigram said it looks forward to continuing to leverage BAT’s global capabilities and scientific expertise.
BAT will subscribe for around 38.7 million shares at a price of C$3.22 per share, for gross proceeds of C$124.6 million across three tranches.