Organigram Holdings continues to bet big on CBD with a multimillion-dollar investment in European hemp grower Eviana Health.
The deal charts a path for Organigram to continue its efforts to expand into international markets and ramp up its sales of CBD oil – a strategy the firm’s CFO, Paola De Luca, laid out for Marijuana Business Daily in April.
Under the agreement, Organigram is making a 10 million Canadian dollar cash investment ($7.7 million), giving the company a 26% equity stake in Eviana, which has operations in Europe and Canada, the companies announced Monday.
Terms of the deal also allow Organigram to buy up to 50% of Eviana’s annual CBD oil at 95% of the wholesale price for up to five years.
“Our investment and concurrent offtake agreement with Eviana will provide Organigram with a source of low-cost, high-quality CBD for the burgeoning medical market within Europe,” Greg Engel, CEO of Organigram said in a news release.
Organigram’s cannabis oil sales tripled in the latest quarter – helping boost profits and sales for the Moncton, New Brunswick-based licensed cultivator.
The firm posted net income of CA$1.1 million in the fiscal quarter ended Feb. 28, 2018, up from red ink of CA$5.7 million in the previous year.
The firm sold 552 liters of cannabis oil in the quarter, compared with 139 liters in the same quarter of 2017.
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